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The Topic of Tesla Jumping On A Friday Morning

Why am I often talking about playing Tesla options with one day of trading life remaining in them. Well the Call and Put options on this stock hava a recent a history of pleasing it's followers. What are the odds of sizeable jumps happening? I would suggest more often than you think. Jumps in the first hour of trading can be large. That' a given. Are you able to make money trading these hot potatoes? Yes and no. The concepts of fear and greed come into play. Here is how it jumped in price on Friday morning June 26th . First it opened lower. The time to buy in was in the very first minute of trading. It topped out at 11:30 a.m. That was a huge increase in price. Then between 11:30 a.m. and 3:00 p.m. it lost $7.00. Here is a better look at this action. . . Other stocks may also have interesting Friday trading patterns." Last Day Option Trading" is not for everyone. ** Tesla jumped again on Monday.
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A Crazy Ride With Carvana

It has earnings coming out tomorrow and the Calls and Puts going into Tuesday morning are crazy expensive. You can't really play them but I just want to show you the action. First the option premiums on this Friday's Calls and Puts.
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There are more Puts outstanding than there are Calls. That is not something you see very often. Here is it's year to date chart. The stock could go both ways.
Now a look at how the options and stock traded on the day.
Remember I started the day by saying these options are to expensive to trade? Well they are, but the stock does crazy things all the time. The $355.00 series of Calls was up $9.00 at one point in the day from where they closed at on the previous days close. Tesla is like that also. I don't like to play interday price swings on Tuesdays. There are other days of the week I find it easlier to play. There exceptions, as this time the stock has earning reports coming out. Having said that, these Calls are to rich for my blood. Let's see what happens. Here is what happened on Wednesday.
Ernie should tone down his rhetoric. Now the 355 Calls and Puts after the release of this news.
It's one day chart.
So it makes more money and the stock drops. That's Carvana. What's with all of the Youtube videos talking about the "car repo rates" that are at sky high levels? Daytraders are trading these options in relatively small numbers and are not holding onto contracts overnight. It's last "two-day-to-expiring options" are still crazy expensive. Now this on Thursday morning.
Remember the 355 Puts at $24.56 we talked about at the start of this blog? Here they are now.
The 355 Calls are now near worthless with one day to go.
To be continued.

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