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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...
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The Tempatation To be Looking At Boeing Calls On a Tuesday Morning

Here is it's five day chart.
Will the 215 level provide some support? Let's also look at it's chart as of last friday.
A drop then was in the cards. Can you see how Boeing started to come back a bit yesterday afternoon? Today it is seeking comfort in the 215 price range. Now this, a look at it's this weeks series of 215 Calls at just after 10:00 a.m. this morning.
Two things. I don't like Tuesday Call options that expire at the end of the week and I don't like options in the $3.00 price range . Why? Well one reason is that the stock would have to make a signifiant move to the upside to make these options double in price. In one of last week's blogs I talked about Exxon options quadrupling in price. Look at how that stock's price jumps around. With Exxon options each one dollar move in the correct direction would be a near double. It's option series are set up in 50 cent increments.
Now back to Boeing again, this time at 10:48 a.m.
The 215 Calls we first looked at trading at $2.96 are now at $2.36 and may be bouncing off a support level. It would take a three dollar upward move on this stock just to move it closer to a break even price. Once again, it is a Tuesday and not a day I like looking at options that expire on Friday. Now here is how these Calls traded on the day.
So something that was trading at $2.96 in the morning at 10:08 a.m. ended up closing at $315.00 at 4:00 p.m. What a big risk to make no real return. I like Wednesday options which expire in a few days more than Tuesday options. Wednesday at the close. Here now is Boeings five day chart.
Here is the kicker to this blog. If Boeing does jump tomorrow then we can say buying on Tuesday is a smart thing to do. Playing Boeing options on a Monday morning and playing them on the last two days of a trading week is a better way to go. Here is how Boeing ended up closing on thr week.
Getting in on Wednesday was the way to go.

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