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So Tesla Dropped $19.40 On A Thursday

Yet it's five day chart looks pretty normal. Now it's one day chart. On first glance it looks pretty sideways however if you look closely you will see ten and twenty dollar interday price swings. Look at the high volumes of trading in it during the first thirty or forty minutes of trading as the stock zig zagged around and then more volume pouring into it around 2:00 p.m. when a second wave of selling pressure hit. Imagine getting into Puts around 1:00 p.m. and getting out around $2:00 p.m. Auto stocks in general did poorly on the day. Now look at Tesla's 30 day chart. We just had 30 days of scorching upward moves. Why fall into a trap of now trying to outguess this action? Note now I have mentioned 1:00-2:00 p.m. selling pressure on a Thursday afternoon. There was fear of a second wave of panic selling. Short term option players have learn to "focus on the moment" especially on Thursday afternoons. I wouldn't want to play the game of buying Calls or Puts o...
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Netflix As A Mid Week Trading Vehicle

I often talk about Wednesdays being turn around days for the markets. Today was one of those days. Netflix had a big drop and then came back a small bit towards the close. Look at this, the 1220 Puts on Netflix at the start of the day, a Wednesday. Can you see they closed Tuesday at $1,340?
Now this. It's Calls.
Now it's one day chart.
Here how the Puts and Calls traded.
The Puts more than doubled in price in the morning and the Calls lost more than half of their value. What's the importance of this read? Maybe there should be more energy put into tracking these moves. Costco options offer the same trading experiences. Three hour moves in mid week trading sessions on high priced stocks can can sometimes offer profitable experiences without the urgency of time (the time value premium on options) working against you.

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