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G.M. Option Are Now A Trap Few Option Traders Want To Play

G.M. popped yesterday on an earnings report. That puts us in "a now what" trap. Will it go up or down and what about the Calls and Puts on it that expire this week (today is Wednesday) and next week? Look at at this weeks Calls and Puts that expire in three days. ............. As one would expect there are more outstanding Calls than Puts. Now a question. Would you be nervous that G.M. might sell off on the opening? Investors now have had time to digest this news and fret over what might happen to the car industry in America going forward. B.Y.D. is now sending boat loads of vehicles to new ports all over the world. That can't be a good omen. So to catch any action on G.M. the very best time to catch any waivering is in first ten minutes of today's trading. Here is how one series of puts traded on the opening. In my mind this was the easiest trade on the week. It was a case of striking when the iron was hot. Now this. Sometimes irons are slow in cooling off.
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Options on Five Dollar Stocks Can Surprise! HSAI

I have talked about this stock before (Hesai Group) and this morning it suprised again. Back on May 17th I did a blog on it called "A New Company To Learn About". Now lets look at it's current five day chart leading up to this morning.
Look at yesterdays volume pour into it. Now this mornings early action. Another spike in volume on the opening.
What's all the excitement about this morning?
If you don't know this company here is what they do.
Now back to my May 17th blog. Where were the five series of Calls on it trading back then which expire in January 2025? Here is how this same series of Calls is trading now.
No one had any interest in them. The bid and ask where crazy far apart. The option makers were burdened by making option markets for a stock with not much of an option trading history. The worry aferall is that a stock like this could double or tank overnight on news. Any stock could but more often it happens in this price range. Why would I say this? Well stocks in the $5.00 range are not penny stocks and are not likely to drop to zero overnight. With good news and a story that is for real they can sometimes pleasantly suprise. Here they are now.
So what happened today on November 27Th. Here now is its current five day chart and todays action in the 5 series of Call options on them that expire on Dec24, 2024.
Thursday was Thanksgiving and the markets were closed. This particular series of Calls still have a month to go. Trading volumes on Friday, the day after are usually expected to be somewhat subdued. Here is what happened to HSAI
This kind of upward action can't last forever. Options on stocks in the 5 dollar range can suprise.

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