Hanging Onto Call Options Overnight On A Wednesday On Options That Expire In Two Days.

In my last blog I said don't do that. The Calls on Tesla that we first started to talk about on Monday afternoon went sideways to down on Tuesday and the doubled on Wednesday. I said take your profits. Just be happy and get out. Was I wrong in my call? Well yes and no. Look at how Tesla traded on Thursday morning.

. It closed on Wednesday at $349.57, opened Thursday at $350.22 and dropped to $348.52 before taking off upwards. So Tesla stuttered on the opening. Anyone buying a Thursday morning Call just after the opening (that expires the next day on Friday) would have made a lot of money. (Don't trade on my advise). I just want to wake my readers up to the concept of "One week Options".

Now look at it's ten year chart.

Will it break new highs shortly? Now Friday. Look at how the 335 Calls closed.

* When we first started looking at the 335 series of Calls back on September 8th they were at $380.00 a contract. They closed today at $6,090! Some of the "out-of-the-money" action today was even wilder. These ones closed at $5.00 per contract. Their previous close was in the $.13 cent ($13.00 dollars) and dropped down to an interday low of $1.00 a contract before bommeranging at one point in time back up to a high of $315.00 a contract!

Why is this happening? People are seeing Tesla jump $25.00 in one day and people are now starting to by options $20.00 "out-of-the-money" with one day to go. It takes guts to do that.