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Why Tuesdays Around 11:30 A.M . Are Particularly Unattractive Times To Be Looking At Options That Expire On Friday

So here are nine examples of what the heading is alluding too. Bad times for the most part to be entering into option positions. 1) Tesla. 2) 3) 4) 5) 6) 7) 9) 8) Now the closing reading on these Calls at the end of the trading session. $6.20 is down from $8.03 on Tesla and on First Solar the Calls are $3.10 down from $3.35. Here is what the markets did on the day. So let's continue on. Now Elli Lilly and Caterpillar. Elli Lilly went from $13.40 to $15.65 and Caterpillar went from $3.95 to bid $3.95 and $4.35. Now Biogen. It went from $2.50. down to $1.45. Boeing Calls went from $2.88 to $3.70. In Biogen there were no further option trades on the day with the bid and ask going up towards the closing bell. Walmart couldn't do anything as the effect of this tariff situation is all new. When is food going to cost more? It's Calls went from $.88 dollars to $.75 dollars. Now the last one, Home Depot. $3.80 went to $4.30 So really the markets sold of or went side...
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G.M. and Tesla. Both Surprised. So Did Ford.

G.M. is pumping out vehicles and people seem to be buying them! Against that backdrop is that they are losing market share in China.
Falling interest rates should help car sales. Does that mean that the Ford stock will also jump? They report October 28th. Look at it's 30 day chart and year to date chart.
They have a history of earning suprises with some being not so good. Here is how the 11 series of Calls traded on Ford on Friday Oct.26th on next weeks 11 series of Call options.
As these prices the stock would have to jump 40 cents on the week to make these Calls think about coming to life.Here is what happened.
Now there is Tesla which reported their earnings after the markets closed on Wednesday Oct 23th. Here is how it traded on that day just prior to earnings report. The open interest numbers were quite low as sometimes we see like 150,000 contracts trade in one one series in one day.
So the 212.50 series of Calls closed at $9.28. Now look at this chart and the closing price one day later.
Now look at the $212.50 Calls today. Up 418%
This kind of a spike doesn't happen very often. It was the trade of the week. Do I like paying earning report using options on automotive companies? Yes, the action is usually short and swift.

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