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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...

The Power Of Tesla Calls Ten Dollars "Out-of-the-Money" With Four Days To Go

First it's chart. Tesla closed up last week $16.79.
Now a look at one series of it's one week Call options in the late afternoon on a Monday. These are like ten dollars "out-of-th-money" and will quickly lose half their value if Tesla has a downward opening. It really needs a five dollar bounce just stay even. It's going to take a six or seven dollar jump to keep these options in the game.
Now another Call options series even five dollars further "out-of-the-money". A ten dollar bounce would cause these Calls to double in price. What a risky proposition. But it's Tesla.
A lot can and will happen in the next four trading days. Day two, a Tuesday brought disappointment with time value wastage being a concern.
To be continued. Wednesday. It's getting closer to Friday.
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Tesla had a healthy gain and has price gyrations of five and ten dollars frequently. These are optons are to be traded, not sat on. Holding overnight last week options positions on Tesla on Tuesdays is not as scary as holding them overnight on Wednesdays. It is however still scary. From my point of view, with only two trading days left in the week it's best to be out of these Calls until after the opening bell on Friday mornings. Then decide if you want to trade Friday's action.

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