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Apple Options

Apple options can move quickly and they are tough to play. Product launches are highly anticipated, often delayed and widely followed. Short term options on Apple expire three times a week. The stock can move $3.00 or $5.00 or $10:00 in any given day. Do I have any special insights into how to play options on it? Not really, in this case the stock has moved sideways for most of the day after a quick morning drop. Now here is it's five day chart. Now this. So what makes these so difficult to play? It's that so many different factors can make the stock move so luck makes up a big part of what might happen next. A six dollar stock drop on Apple is more likely to experience a reversal in price than a twelve dollar drop. Let's see what happens next. Here is the $307.50 series of Calls in the last minute of Monday trading. Can you see the volume of trading shoot upwards in the last 70 minutes of trade. Let's see what the open interest is going to be going into tomorrow...
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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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