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Lucid. Options On $6.00 Dollar Stock With Two Days To Go Are Difficult To Trade

What do you think about this chart? It's one of those falling of a cliff charts. It's a Thursday morning and it looks like this stock is kind of in a downdraft. Look at my most recent blog on Rivian. The bad news on Lucid could be a hangover effect caused by Rivan's one day prior bad news story. It was talk about Rivian going back to the markets to raise more money even though they were starting to lose less of it. It was a good-news, bad- news story. A story which would take a few days for the markets to digest. Let's now look at two series of Lucid's Calls which expire tomorrow. We now find ourselves forty one minutes into the market's opening trading action. The 26 series of "out-of-the-money" Calls that expire tomorrow are trading last at $.03 cents. ... Now this. Now look a this small rebound twenty five minutes later. .. Here is where it gets a touch confusing. The $5.50 Calls which were once at $.22 cents are now $.30 and the $6.00 series of...
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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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