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Exxon Has Just Had Like Four Days Of Going Up.

Exxon just broke it's previous three month high. Now it's five day chart. The 117 Calls have doubled or tripled in the last two days. Now it's chart as of 10:42 a.m. this morning. Today is Wednesday. The markets are closing today at 1:00 pm., then closed tomorrow for Christmas and then open again for a full trading day on Friday. Now this. A look first the Calls which are $.30 cents "out-of-the-money" and expire on Friday. Now the Puts which are already like $.30 "in-the-money". Expectations are that the stock is going to go up and that there is still a full day of trading on Friday. Here is what the markets and what the price of oil are doing. Can you see how traders have a preference for the Call options and are hoping Exxon continues it's natural progression upwards. They are prepared to pay somewhat of a premium to be positioned in this situation. I don't know what the outcome is going to be. Nobody does. As a reader can you see the co...
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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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