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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 below is actually a 4:00 p.m. readout. This chart shows Tesla ...
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Sweet Spots In The Market And More Used Car Market Observations.

This blog is yet another blog about trying to day trade Carvana again. Why? Well Carvana as of the last couple of weeks is in a sweet spot and seems to be powering upwards. Last Friday as I reported in a previous blog it jumped $12.78 in one day. Players in the the "American used car industry space" are reporting their quartertly earning reports and they are all good. Consumers in the last few months where rushing to by cars before the tariffs kick in. Coincidentally,the party may soon be coming to an end. Once again I realize that only a very few readers have any interest in options on these types of stocks however it is a facinating section of option trading to be watching.
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Now lets jump ahead to 11:21 a.m..
Notice the volume of trading in this option series picking up? After three days of rising prices more traders are starting to respect this stock. He is it's five day chart. The path forward is now unclear.
Is this softening of pricing a concern? Would I say to buy Puts? Not really.This looks more like a slight pause. I wouldn't be thinking about Puts unless something really scary started to happen. Now this.
Now a 1:00 p.m. reading. Things have gone flat. Something new must be factored into this equation. The markets will be closed this Friday and they close early tomorrow at 12:30 p.m.. There might be some action in the morning however many traders will be off on vacations so the morning action, if any will be shortlived.
If we look at other companies in the same space their stories are pretty much the same. I just listened to a "Lathia Motors " earnings conference call and they are upbeat about their path going forward.
Here are how the 340 Calls are sitting. Most traders will not want to hold these options overnight tonight. If the markets open lower on the opening they would be in trouble.
Here is how Carvana closed the day on a Wednesday.
Now the action on Thursday morning. It's Carvana. The stock did not disappoint the Call option holders.
Here is how the markets are doing at 10:30 a.m.
Option players still holding these Calls are braver than I would be. Now here are the closing prices on the 340 Calls and it's day trading chart. Notice the sharp sell off in the morning and the sharp rebound!
The spirit of Cavana was still alive.I helped that the DJIA had a strong day.
What is there to learn from this blog? Well holding Call options overnight going into the last day of the trading action is not a smart thing to do. If that's all you learned from this blog that's enough. On a different note, I think all of the stocks in this sector are reaching a peak. Why? Well, here is what others are saying.

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