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Showing posts from August, 2024

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Let's Set the Stage For A Friday Option Ride on Tesla

Tesla has moved sideways all week. That is unusual. Here is what the markets are doing. Now it's morning trading chart and two series of it's options late in the morning. It's 11:51 a.m.. There is also more action in the Calls than the Puts as there always is. Call holders were rewarded in the early morning trading action. Now a different way to present the same material. Now this action on the Calls and Puts a few minutes later at 12:30 p.m. or 31 minutes after our first reading. The Puts have gone from $1.44 to $3.48. Here is how Tesla closed the day. If you could do one trade a week like this you would be a happy camper. ** See my February 13th blog about Telsa dropping on a Friday afternoon.
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The D.J.I.A Drops over 1,000 Points on The Day

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Yet some lucky option trader's could have made money buying Telsa Calls. Bumpy markets offer Option traders some of the best times to make money. How have Caterpillar, Boeing and Deere done in the last five days? All three of these stocks offered Call option players decent returns if the bought in just after the opening this morning a Monday. To be continued.
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Roku And It's 2nd Quarter Earning Report

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Let's start with the time period of Thursday morning with an earning's report coming out after the closing bell. Look at how crazy expensive these three series of Call options are. They are the Roku "out-of-the-money" Call options that expire tomorrow. The volume in them is not all that crazy but if I owned the stock I would be tempted to sell the Calls against my position and hope they would expire worthless. Tomorrow is Friday August 2nd. ...... ....... Why pay so much? Why pay $4.05 for a Call with a striking price of "58" with one trading day to go in the contract? The stock would have to jump four dollars just to get your money back? Talk about stupid? Yet then again Netflix, a company also in a similiar space sometimes moves like ten dollars in one day. Here now is a look at what happened by showing tomorrow's five day chart. Down $2.19 on the day to $53.14 with the DJIA down over 600 points. Say goodbye to those Calls if you ever bought in. N...
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