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Step Down Charts And Short Term Options. Nio

Here is a classic "step-down-chart" with one minute of daytime trading life left in them before the markets close at 4:00 p.m.. The stock is Nio. ... This printout of "in-the-money" Call option also shows one minute of trading life in them before the market closes. It's Tuesday and these Calls expire this coming Friday. You are purchasing three days of market trading life. To purchase one thousand shares of this stock would cost you $5,750.00. To purchase options that control the price movement of one thousad shares of this stock for three trading sessions would cost you $370.00. ( Ten contracts at $.37 each). These Calls are also currently $250.00 "in-the-money" which means if the stock totally goes flat for the next three days your options will still have that amount of intrinsic value left in them. Now think about this. Many option accounts in the U.S. enjoy free option trading and there are discount brokers in Canada who can save you money. A fl...
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Wednesdays Can Bring Market Reversals, Once Again My Focus in Looking At Playing Short Term (Less Than One Week) Options

Two stocks and the activity on their Put options today.
Only 17 option contracts traded on them today. Traders are afraid to trade them. Wednesdays are often the best days of the week for market reversals. The second stock is one I also recently talked about, Netflix. Here is today's action.
The stock is down however if you look at the chart the drop is barely noticeable. Or said differently, price changes like this are a near regular occurance.Yes there was light to moderate trading in this series of slightly "out-of-the-money" Puts. * The concept of playing short term options on stocks priced in this high price range is best suited for day trading only. It is advised traders do not hold onto overnight positions to avoid the risk of getting caught on the wrong side of a trade. That plus the time value element of the equation becomes more of a worry, with in this case only two day to go in the life of these options. Getting stuck going the wrong way will be fatal. Wednesdays give you the luxury of trading interday without much of a concern for the "time value" issue. In contrast, Monday and Tuesday option trading tend to be priced more defensively and make less profitable the exercise of trading one day price swings which are less than ten dollars. It's all kind of difficult to explain. ..
Once again, Wednesdays are often the best day of the week to look for interday market reversals on options on high priced stocks.

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