Featured

Boeing. Sneaking Through Chaos Unscathed.

Let's start with this chart. The chart is clean looking. It's still above it's opening low. When the stocks decides to move it does so quickly. Now this. Now this. ...... Here is how they closd the day. Here now is it's current five day chart. To be continued.
Post a Comment

Could A Wednesday Rebound In Tesla Be A Ticket to Success?

So here it is. A five day chart on Telsa and a look at the 322.50 series of Calls that expire on Friday. That's two days away. The pricings I show are as of 1:21 p.m. as the stock is on a slight upward rebound after selling off on a morning self induced, "Musk" tweet. More about that later.
............
Now it's daily trading chart on this Wednesday and the details of the news we referenced. There is also other news.
The Tesla story has a number of moving parts.
Here was the news on it.
The first reported pricings on the Call options shown was not until 1:21 p.m.. These Call options did trade much lower around the 10:30 a.m. mark. Given that Tesla can move like $10.00 in any given day makes interday trading option possible, especially with only a couple of days of trading left in them. Look now at how these Calls crept up and closed the day. Look at the high volume of contracts traded. It's an exhaustinng job watching all of this activity.
These are relatively tame days for Tesla options. In wilder times the premiums often cost more. Even if Tesla moves up and this blog turns out to be all good it really doesn't teach us very much. One thing I would like to point out is that playing Tesla options on Mondays and Tuesdays which expire at the end of the week have more of a "time-value-cost" built into their premiums. "Time-value-considerations" can be a concern. At least a Wednesday Tesla Call option can jump on a Thursday market opening in only a matter of minutes. They are not options you would want to be holding at the end of the day. Let's now see what happens on the opening tommorrow at 9:58 a.m.. Thursday morning.
It's all red, all down.
Welcome to trading short term options on Telsa. A waiting game begins. It would of being nice to be walking away with a fat profit. That didn't happen. To be continued. Now this eleven minutes later. Things are starting to look brighter. 2,960 Call option contracts traded during this time period.
At 1:45 a.m. Tesla is stalling out with the indexes not doing much.
This is not a fun time to be stuck in these options. Now Tesla on the close on Thursday.
It's not game over yet however it's not a fun game to be in. Friday morning. Barron's cover last weekend showed a caricature of Powell's picture. Today is his day to shine and here is Friday mornings market.
A feeling of dispair has turned into a victory. Yes Tesla options can suprise.

Comments

Post a Comment

Popular posts from this blog

Waiting For A Drop On The Opening On Bad News - Eli Lilly

Image
Here is the bad news. The company is Eli Lilly. How bad is this news? Well look at it trading in the premarkets. So what do I think? I think the news is a setback of sorts, but not really all that bad. The stock is going to open lower, that's a given. It's like trying to play Boeing after an announcement that an airplane has crashed. So the stock is going to crash and it might have a small rebound and then it's going to slide down some more. A test of sorts will happen sometime in the afternoon. It might stock falling but then where will it go from there? The best case scenario is a recognition that investors got it all wrong and the stock ends up flat on the day. Yet there might be more of a downward dumping of the stock on the close followed by a selloff on tomorrows opening. Should option players be jumping in to play the upside on next week's Calls? That is the question. Here is a look at Boeing on the days after a crash. Day two after the crash was equally as ...
Read more

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

Image
Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slightly out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-ma...
Read more

Another Blog On "Vinfast"

Image
There is so much to read about this companies history online. Do your own homework. Their success is not dependent on what ends up happening with their sales in North America. They are nimble. There are plenty of auto factories all over the world now for sale they can acquire. They have dabbled in Australia. Having access to money to keep going doesn't seem to be their problem. Rivian also seems to enjoy this advantage. Vinfast is currently building a new plant in India which could employ thousands of people. That's an emerging new market. New relationships are being built and new investors will be coming onboard. Are option players looking at this stock? Not really if we look at these "one-month-out" Calls. What about Calls further out? What about next January? Here is a look at the three and four series of Calls. Nobody seems willing to bet Vinfast Calls. Now this. Here are two snippets taken from a blog I wrote about this stock back in early December of 2024. ...
Read more