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What Happens On Friday Afternoons In One Day Option Trading.

I want to talk about one day (Friday) options . Do your own homework on this topic. I want to  show you how  it works and what this type of trading potentially has to offer.  This isn't however the most the most exhaustive of studies. The first stock is Costco on a Friday morning when most of the market is down. Trump made some stupid comments about "Apple" and people are getting fed up with his style of management. A one day  cloud has set it over the market. Trump is to blame. Friday Calls on Costco. Will these Calls rebound? Can you purchase one day options that expire today at 3:00 p.m. and make money by holding them for a few hours? (After you buy in you are free to sell them whenever you  want).  Now a look at these same Call options at 1:44 p.m.. Are you surprised  at what you see?  These Call options have sold off in price and time is now starting to run out. These Calls are down but potentially not out.  2) Now Walmart and it's ...
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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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