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A Classic Tesla Friday Option Day Story

So Tesla moves up in the first few minutes of trading on a Friday and quickly decides to go south. The DJIA closed down on the day 685 points. Here is how one series of Puts, the 425 series of traded on the day. A low of $4.11, the price the 425 Puts just after the opening and a closing price of $33.90. More surprising were the "out-of-the-money 410 Puts. A low of $.33 and a high of $21.28. The most extreme gain was with the 392.50 Puts which has a low of $.03 or three dollars a contract and a high of $4.12 or four hundred and twelve dollares. Do the math of that one. How many times has this website talked trading "one-day-until-expiring-options" on Tesla options. The answer is many times. There was news this week about Musk raising 75 billion dollars for "Space X" and in doing so is selling out only 4-5% of this new company. Musk is the richest man in the world. Powerful people can make powerful moves. So what's my point? My point is that the option mark...
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Caterpillar On A Tuesday Morning After a Week The Stock Jumped $27.88 Dollars. Part Two

Here is it's five day chart going into the opening market. Today is Tuesday.
My "Part 1" blog caught yesterday's modest decline. Today Caterpillar has to deal with this new news which happened "out-of-the-blue". You don't see this very often.
Now this, a look at the 435 Puts on Monday morning at 10:02 a.m.. That was yesterday.
Will other investors start to bail on Caterpillar? Here is a look at it's premarket trading activities.
If you are an option trader sitting on the 435 Puts would you be closing out your position on this news? Gifts like this don't happen everyday. I hate to say this but I would. When you are playing one week options and have a win for reasonings totally unexpected just take your money and run. It might prove to be the wrong decision to make, however in option trading what happened yesterday is all but forgotten. Don't worry about money being left on the table. Now a look at these Puts at 2:30 p.m..
Take note of the "open interest". Tomorrow we will be able see how many holders of these Puts sold out before the end of the day. I think most will, as short term option players don't like to be in overnight positions. That plus Caterpillar started to rebound at the end of the trading session. This two day Put ride could now be over.
Check back tomorrow and we will see what the open interest number is going into Wdenesday's action. I think most option traders would have bailed. *** Here is a look at the 435 Puts On Wednesday at 12:45p.m. I was talking about.
814 is now the open interest number including four contracts trading today which is down from an open interest number of 1,227 yesterday. That means about 600 contracts were closed out. Fewer traders in the "one-week-trading-space" want to be holding this weeks options on Wednesdays and Thursdays. That is a comment I often make.

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