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Tesla Calls On A Friday That Expire On Monday

It's the same topic I posted last Friday. Today is Independence Day and the markets are closed. For this reason we can't really talk about mimicking last last Friday's trading. Here is it's five day chart. As you can see Tesla dropped on Thursday. Here is a look at how one series of Telsa's Puts traded on Thursday. Now look at the pricing on this one series of "slightly-out-of-the-money" Tesla Calls as of Thursday's close. These Calls would let you be in all of Monday's trading action. Is the price of $4.60 a contract a fair price? Well consider these two points. One day swings in stocks in general in the $400.00 price range can be significant. This five day chart of Tesla below shows you how it jumped $32.13 last Monday! The second point is that long weekends (three full days of no market trading) are know to cause market resets. Stocks like Exxon can get whipped around. That's what makes the pricings on all options now so difficult to gau...
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Novonordisk On Bad News

It crashed hard. It has had crashes like this before. Yet it's not a company that is going to go away. They still have sales in the billions of dollars.
When the dust settles this stock might gain back what it has just lost. Would I be rushing in to play the upside. Short term no but maybe long term.
It looks like Eli Lilly fell in sympathy.
Can you play Eli Lilly for a bounce back up? Look at it's chart. It's wild. Here is it's thirty day chart.
Knowing that Novonordisk crashed yesterday and knowing that Eli Lilly took a slight hit also creates an opportunity. Novonordish woes are not Eli Lilly woes. Here is how Eli Lilly is trading in the premarkets this morning. It's up ten dollars.
Options can be used as a vehicle to make money on causal relationships. Now for one caveat. Playing options on stocks in the $750.00 price range is next to impossible. Why? Well the premiums are crazy expensive. Here is an example of how one series of it's the Calls is traded on the opening.
At the end of the day this gain was all lost.
When you have to shell out like $1,000 for one contract to make a 25% return, it's is not worth the effort and the risk. It's better to trade options on stocks like Caterpillar, Boeing and Walmart in lower price ranges. They can be equally rewarding without such large upfront costs.

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