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"End Of The Day" Friday Option Trading On Tesla

Back on April 2nd I did a blog called "Two Hour End Of Week Option Trading on Tesla". In that blog it was noted that Tesla dropped in price starting at 1:30 p.m. and 42 minutes later it was $5.95 lower in price, approaching the "must-get-out" at 3:00 p.m. mandated option deadline. Put option buyers getting in around 2:00 p.m. did well on their investments. (The stock was down $20.67 on the day). Here was it's chart on that day. It was a Thursday with Friday being Good Friday. Now let's fast forward to today's action, it being the following Friday. Tesla options had a tough start to the day. Here an example of what I am talking about. Look at the 347.50 series of Calls at 12:34 p.m. Are you able to see how they are down in price on the day? Now this. A look at how these same options closed out the day. They charged back upwards towards the close. The $140.00 option price we were looking at was actually a 4:00 p.m. readout. This chart shows Tesla tradi...
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Carvana On A Monday Afternoon.

 Carvana had a good week last week. It was up $22.86. I talked about this American used car dealer franchise  in two of my last blogs last week.

It's a Monday. Let's look at it's Puts on it which will expire this Friday. What's the point? The point is to illustrate the power of Puts options over a short period of time. Before we do that let me show you how one of it's competitors is trading on the day. "Avis Budget", as you can see from the chart below is on fire.

Now let's talk about Caravana. It's now  12:17 p.m.. It's down $4.82. on the day. Is it to late now to buy Puts on it?  Why would you want to? Look at how it is selling off. Had you bought Puts on it forty minutes earlier you now could be selling out at a wonderful profit. Check out it's current  chart below. Do you think that it's on the verge of finding a support level?  It's an ugly looking chart.


When you see charts like this what do you think? The last time I did a blog on a chart like this it was of Costco and the stock ended up losing something like $35.00 on the day. As quickly as I could type this part of the blog up the stock dropped even more.
Now this. It's the price on the  315 Puts at 12:17 p.m. The price is $7.10 with a volume of 142 contracts traded on the day and a total outstanding volume of 149 contracts.. That is a very low number. The bid and ask are tight. That's a good thing.




Does it look like the chart will find some kind of a support level?  Now this.
 It's now 12:38 p.m. and the same Puts options we were watching twenty one minutes ago at 12:17 p.m. which were trading last at $7.10 have now traded up to $10.60 with a last trade of $10.10. Sixty four additional contracts traded during this period of time. That's a $310.00 increase in price per contract at the $10.10 level.. ( The high of the day on the Puts actually occurred only seconds earlier when they hit $10.60 on the day).
So what's the point? The point is that catching freefalls on stocks like Carvana which are know to swing wildly in price often daily can sometimes happen in only a matter of minutes. Traders can buy in a sell out  and get fair fills. Are you now wondering as to how Carvana's one day chart ended up looking like on the close? 
Here it is.




The stock ended up having a surprising upward  afternoon lift leaving these Puts in the dust. This is truly a great market for nimble option players to operate in. 
 Now this, a look at Avis Budget. I talked about Avis Budget at the start of this blog. I can't find any news as to why the stock is so strong. Here is it's five day chart.

Now look at the high and low on it's one day options.
Notice the low volume of trading in these options.  What a move upwards. The company has a global workforce of  24,000 employees.  Can someone explain to me why so few of  these employees, or even stock analysis watching the stock for that matter are not clued into any of this action? It totally baffles me. 

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