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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 was actually a 4:00 p.m. readout. This chart shows Tesla tradi...
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Costco And Dangerous Fruit . It Was Like Robbing A Bank

Let's zoom in on a dangerous Friday afternoon option trading situation. Do you want to try and rob a bank? Look at this chart.
It's zig-zagging and it's Costco is down $2.02 a 1:42 p.m. on a Friday afternoon. It's one week options on it that expire at 4.00 p.m. actually expire at 3.00 p.m. for retail traders. Might it jump a couple of dollars or more in the next 78 minutes? That's the bet to rob the bank. I like it. Past blogs have talking about Costco moving $25.00 and $35.00 dollars in one day. If your ahead of the game from trading all week you can afford to explore this situation. Here now at 1:40 p.m. are it's three series of "out-of-the-money series of Calls".
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So what ended up happening? Costco reained the 42.00 it lost and shot up another $4.00. I will now only show you one of these series of Calls and how they were trading at 3:00 p.m. which was the get out deadline. They went from forty-four dollars a contract to four hundred and thirty five dollars a contract!
Here is it's closing one day chart. You can see it jumping up at the end of the day. It's Costco.
What an amazing opportunity. ** a special note. Friday afternoon option trading most usually just holds flat. The action I am describing is somewhat abnormal. * A quick part two for the more advanced readers. A comment on the 3:00 p.m. deadline the trading houses impose to get out by 3:00 p.m.. You don't really have to. If you don't sell out by that time they will eventually just sell you out "at-market". Sometimes they will call first or at least try to call you. You don't really have pick up. Sometimes if I am caught in this situation and want to hang on a little bit longer I will submit just prior to this 3:00 p.m. deadline a sell ticket order slightly above the options current selling price. That way they know I am tracking the action and they might cut me some slack. In this instance Costco continued to rise. This next readout shows you that the 965 Series of Calls did actually reach a high of $501.00 on the day.
Cheers.

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