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Trumph Picks A Friday To Change The Rules.

This is kind of dirty pool. So the stock and options jumped on this news. Did Trumph's cronies get in on this action? It's difficult to tell as they could have got in a few days or a week ago and they could have bought Call options with longer term expiracy dates. Or his stockbroker cronies could have bought the stock to also profit in this gain. Certainly the authors formulating these policy changes were part of this action. In all fairness I can't prove that insiders profited from this Friday event. Yet here is the thing. Releasing this kind of news on a Monday or Tuesday would mitigate this kind of an event from being as impactful as it potentially could be. Option premiums shrink in value the closer you get to their expiracy dates. Lawmakers know this. They should know better than to allow this to happen. No government policy changes that will directly effect the stock market should be allowed on the trading days of the week when the majority of short term Call and P...
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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 Calls back on September 8th they were at $380.00 a contract! They closed today at $6,090. Tesla is on fire. Some of the "out-of-the-money" action today was even wilder. These one 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!
I would now think that this stock has to take some form of a rest.

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