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Is Tesla A Good Robot Play?

There's going to be pushback if Musk decides to turn his auto production lines into robot making production lines. That's a new fear. It is also noted that used Teslas are dropping in value quickly. Tesla was down in price $5.62 last week. How is Musk going to make this new venture work? Might his first generation of robots like his cybertrucks quickly become obsolete? If you think about it, maybe existing shareholders are already lightening up on their stock positions knowing that a bumpy ride could soon be on the horizon. Now a new topic. How much do the "three-month-out-Calls-and-Puts" on Tesla cost? That's a fair question and here is the answer. Now we also need to look at how it has traded in the last three months. The stock is down about $60.00 over that period of time. Anything is possible with these three month out option series. Now this, Tesla drops on the Monday February 23th opening. The markets are having a bad day. Look now at what the May 26t...

Option Trading Strategies To Avoid.

Ford Call Options on a Monday morning that expire at the end of this week.
Had you bought the Calls on it on Friday morning that expired that afternoon you would have made out very well. Here is what Ai says.
Now this, the 12 series of Calls options on a Monday morning that expire at the end of the week. They took a slight dip.
Here is it's Monday morning chart.
Here is a look at the same options twenty one minutes later. Traders have bought in on this dip.
Is this trading strategy, buying this weeks Calls on a Monday morning on a stock hitting a fifty-two week high a prudent thing to be doing? Or could this be a question of coming to the party to late? This is the concern. Why not purchase instead "in-the-money-Calls" with one month's trading life in them still to go? That would be a safer strategy. Their next earnings report comes out on October 27th.
Here is how other stocks are trading. It's a mixed bag.
So now it becomes a waiting game and this is one of the reasons why I called this blog "Option Trading Strategies To Avoid". It's no fun getting stuck in waiting games like this, an exercise I sometimes refer to as "watching paint dry". Let's see what happens next. Now a noon hour update.
It's chart is starting to look perky. Here it is at 2:15 p.m. The options are not doing very much. Five day out Options take time to turn around. They are not the most exciting of options to play.
Now it's time to get out.
....
Now remember the one month series of Call options we showed back at 10:15 a.m. trading at $.96 Here they are now at 3:03 p.m. trading at $1.20. That's not a bad gain for a morning hold.
Why do I say "get out?" Make a quick profit and just say thank you. A stock in this price range hitting a fifty two week high does attract attention. Playing these Calls was an exercise in getting a free ride at a hot time. Here is it's one year chart.
Last Friday is when the real action happened. Ford options for longer periods of times can be at times somewhat discouraging to play.

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