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Tesla and Deere Going into a Thursday Morning.

Are you able to remember my blog last Friday talking about Tesla dropping $19.00 in one day and it's Puts jumping up a zillion dolllars? Here are the closing numbers on Tesla and Deere today, Wednesday September 11th. They are difficult to read but Tesla closed at $228.13 and Deere at $388.59 Now look at the sightly "out-of-the-money" Calls on both of these two stocks which expire at the end of the week. Now the Deere Calls. .................. Now look at their one day charts. Remember I have repeatedly said that Wednesdays ( in the context of trading one week options) are the best days of the week for turnarounds situations. Look at the one day charts and look at the gains on the day that both of these option series had. They both took off on the upside after a morning dip. I will continue to track the movement of these two series of Calls over the next two days but the context of this blog is a blog in itself. Wednesday once again can be turn around days. Happy tr
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Options On Stocks In The Four and Five Dollar Range Can Be Dangerous

Summer holidays are now over for most people and many of us are now back online figuring out how we survived the summer. Look at these charts. It's Lucid, an electric car making company and it's stock is now near the five dollar price range. Options on stocks in this price range are difficult to play. I made that comment in a posting last week on the stock A.M.C. Entertainment and watched it bounce on a Monday morning to then only give up it's gain. Why not just buy the stock if you like? That makes more sense. That is one of the reasons that the volume in these Calls is so light. Now look at Lucid's one month, five day and three year charts.
Now against this backdrop consider this. "In-the-money" Call options with one month to go. What one would be hoping for is some kind of a good news annoucement.
The early October time period is afterall is not that far away.
These $.60 cent Calls (or $6.00 dollar a contract) could go to $1.20 (or $12.00 a contract) on any kind of a pop. Here they are again on the opening on September 4th.
Notice the "ask" has jumped up to a crazy number. When you buy options on thinly traded series you almost have to buy in on days it is trading down. Lets also now look at the 3.5 series of Calls that expire in three days.
This seems to now be where the action is with a much more realistic bid and ask.
To be continued. A September 4th update (Wednesday at the close) Faraday Future update. I have talked about this stock before.Look at how it's $5.00 Calls that expire this Friday traded. Up 1,900 % on the day. They closed Tuesday the day before at .04 cents.
Sometimes five dollar options will suprise. A September 11th update.

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