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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...
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So Tesla Dropped $19.40 On A Thursday

Yet even after a drop like this it's five day chart looks somewhat normal.
Now it's one day chart shown just below. On first glance it looks like its moving somewhat 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 a 30 day period 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. During that time period there was a fear of a second wave of panic selling. Short term option players have to learn to "focus on the moment", especially on Thursday afternoons. I wouldn't want to play the game of buying Calls or Puts on Tesla at the end of the day hoping to guess right, as to which way the stock will trade in the first ten or fifteen minutes of tomorrows (Fridays) trading session. The only times I like to trade Tesla on a Friday is when and if it starts to rally in the early afternoon. Yet that is super risky. Others may not agree with this strategy. Let's see what happens. ** Friday morning after 11:00 a.m. Take a guess as to what has happened. Do you think up or down?
....
This is Tesla. Here is how Tesla ended up closing on the day.
Can you see the volume spike into it around 2:00 p.m. and jumping about $7.00 upwards in price in a one hour period of time? That's what I was talking about. Readers, these blogs are a disconnect from what most option bloggers talk about. The nice thing about successful option trading is that your free on the weekends to do whatever you want.

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