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Step Down Charts And Short Term Options. Nio

Here is a classic "step-down-chart" with one minute of daytime trading life left in them before the markets close at 4:00 p.m.. The stock is Nio. ... This printout of "in-the-money" Call option also shows one minute of trading life in them before the market closes. It's Tuesday and these Calls expire this coming Friday. You are purchasing three days of market trading life. To purchase one thousand shares of this stock would cost you $5,750.00. To purchase options that control the price movement of one thousad shares of this stock for three trading sessions would cost you $370.00. ( Ten contracts at $.37 each). These Calls are also currently $250.00 "in-the-money" which means if the stock totally goes flat for the next three days your options will still have that amount of intrinsic value left in them. Now think about this. Many option accounts in the U.S. enjoy free option trading and there are discount brokers in Canada who can save you money. A fl...
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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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