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"End Of The Day" Friday Option Trading On Tesla

Back on April 2nd I did a blog called "Two Hour End Of Week Option Trading on Tesla". In that blog it was noted that Tesla dropped in price starting at 1:30 p.m. and 42 minutes later it was $5.95 lower in price, approaching the "must-get-out" at 3:00 p.m. mandated option deadline. Put option buyers getting in around 2:00 p.m. did well on their investments. (The stock was down $20.67 on the day). Here was it's chart on that day. It was a Thursday with Friday being Good Friday. Now let's fast forward to today's action, it being the following Friday. Tesla options had a tough start to the day. Here an example of what I am talking about. Look at the 347.50 series of Calls at 12:34 p.m. Are you able to see how they are down in price on the day? Now this. A look at how these same options closed out the day. They charged back upwards towards the close. The $140.00 option price we were looking at below is actually a 4:00 p.m. readout. This chart shows Tesla ...
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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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