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Caterpillar,Tesla And Nvidia Puts On A Tuesday Afternoon. It's 3:40:00 P.M.

Caterpillar is up $40.00. at 340 p.m. Might it sell off a touch before the close? The DJIA ended up closing the day 1,024 points! Let's look at these three series of Puts series which expire on Friday. First Caterpillar. Now Tesla and a look at it's Puts about four dollars "out-of-the-money". Now Nvidia with a focus to be watching it's Puts. Once again I would like to mention than these Puts still have three full days of trading life in them. These ones are also slightly "out-of-the-money". Now jump ahead to the closing reading. First Caterpillar once again.The Puts we were watching closed at $7.10 only ten cents higher than what they were trading at when we first looked at them. The Tesla Calls however jumped up to $3.65 from $1.90 and the Nvidia Puts jumped up from $.75 to $1.25. .. This is one approach to playing super strong days in the market without losing any sleep. Puts can sometimes be your best friend. ** A special point to think about....
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What Happened to Options On Tesla With Two Days To Go And An Earnings Report

First it's five day chart going into a Thursday. It closed at $438.97 on Wednesday. Something else was happening on wednesday. It's quarterly earnings report were coming out after the markets closed. This factor means that both the Calls and Puts were priced higher than they usually would be.
The 440 Calls going into the opening closed at $14.30 on wednesday's close and the offsetting Puts with the same striking price closed at $15.37.
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So the $14.30 for the Calls means $1,430.00 U.S. dollars which equals about $2,000 Canadian. Just to break even the stock would have to close at $454.30 which would be a huge leap upwards. It could. As stated in a past blog on two of the last three Fridays Tesla has had an interday price swing of over $30.00 dollars. Let's watch it and see what happens. So really the "small fish" meaning the little guys like us can't be sloshing money around and holding onto contracts like this overnight. But wait. It's the swings that one should be watching and opportunities will be presenting themselves interday. Here is how both the Calls and the Puts traded and closed the day. The Puts jumped up $12.00 on the opening and the Calls got crushed and later rebounded.
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How did this all happen? Well here is it's one day chart.
Now here is the highly anticipated earning report news.
Initially the stock crashed on the opening on this report. Then,something that was bad suddenly switched to being good. That was the time to be getting in on the upside. Look at these interday highs and lows.
Tesla options are best played interday. Now congratulate yourself if you got through reading this blog. There was a lot to digest and this was one of the most action packed days I have witnessed on this stock in a very long time. Tesla options often suprise. In some ways I understand why some option players make Tesla their number one stock to play options on. Friday's action was also a suprise.
Put option players who got in after the opening bell are the ones who got lucky. Look at how the 450 series of Puts traded on the day. As stated before, catching "last-day-to-expiring-Friday" Tesla options going in the right direction between let's say 1:00 p.m. and 3:00 p.m. is often a good strategy.

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