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Is Tesla A Good Robot Play?

There's going to be pushback if Musk decides to turn his auto production lines into robot making production lines. That's a new fear. It is also noted that used Teslas are dropping in value quickly. Tesla was down in price $5.62 last week. How is Musk going to make this new venture work? Might his first generation of robots like his cybertrucks quickly become obsolete? If you think about it, maybe existing shareholders are already lightening up on their stock positions knowing that a bumpy ride could soon be on the horizon. Now a new topic. How much do the "three-month-out-Calls-and-Puts" on Tesla cost? That's a fair question and here is the answer. Now we also need to look at how it has traded in the last three months. The stock is down about $60.00 over that period of time. Anything is possible with these three month out option series. Now this, Tesla drops on the Monday February 23th opening. The markets are having a bad day. Look now at what the May 26t...
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Ford Puts

The stock has had a nice five day move.  Up until today that is.

Short term options on stocks in the ten dollar range need to be purchased in multiples of ten or more because commissions are crazy expensive on options in this price range. At least they are in Canada.. Here is a look at the price of Puts yesterday on a series of Puts that will expire tomorrow.
Bid $.04 or $4.00 per contract and ask $.05 or $5.00 per contract. They actually traded down to a low of $.02 on the day. Now here is a look at them today, which is a Thursday.
Was there a catastrophe drop in the markets to make this  happen?  Not really.
Trading options on ten dollar stocks with two days to go is full of surprises. I have talked about Ford options before. I will provide an update to this blog after the markets close tomorrow which is when these Puts expire.  Ford options have good liquidity and tight spreads. They often change materially in price in a one hour period of time .I also note that Ford and Stellantis are now trading for about the same price. G.M. did a major recent buy back program and is trading at a higher price this year than last year.  The trading patterns of all three of these companies get constantly bantered around with all of these tariff  talks happenings. Now here is what happened on Friday.  First the markets were down.
Now this. Friday's trading chart and a look at how the 10.5 series of Puts closed the week.

Look at the swings in it's price. Look at Ford's one day (Friday) trading pattern. Back at noon when the price of the stock was over $10.50 the holders on these Puts might have being biting their nails. 

If your new to this game don't try trading them on Fridays.

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