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Showing posts from August, 2024

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Towards Understanding Tesla Calls.

First, forget everything you know about Tesla's current state of operational history. Forget their news about their new factory in Germany, their new models and how many kids a fifty four year old fellow named Elon Musk has. Focus on the moment. In this case it's a Thursday afternooon and we are looking at options on Tesla it that expire the very next day. The interesting thing in this situation is that we are catching Tesla trading flat on the day. It has maintained for the last 2.5 hours a slight predisposition to the upside. Now this as we approach 1:00 p.m.. We find a price of $4.70 for the Call option shown above. These Calls are just slightly "in-the-money" and expire the next day. Things could change even before the end of the day. It takes big money to buy in and the risk is high. I get it. The Puts will also cost you chunk of money. It's Tesla and you are trading with some of the ...
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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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