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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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Last Week I Said I Don't Like Purchasing One Week Options On Tuesday (Options with Only Three Day Trading Life Left)

Let's take four high priced stocks on a Tuesday at the close and track their "slightly-out-of-money", last few days to expiracy Calls. My take on things is that Tuesday options which expire on Friday are not the smartest of things to be buying. Let's follow their advancements into the next trading session. 1) Costco.
2) Deere
3) Eli Lilly
4) Tesla
Let's see what happened. First, here is how the D.J.I.A traded on the day.
1) Costco like the markets was flat on the day. The Calls lost 19% of their value.
2) Deere was down just a fraction. It's Calls were also down 19%.
So here is my thing. With short term (this week) options the option premiums drop about 20% a day in value in the first half of the week. It's an opportunity cost and unless you have a specific reason to be holding option contracts overnight I say just stay away. 3) Eli Lilly. Here is where things get interesting. The stock was up $2.09 and the options traded down! What's that all about? Well it's the 20% slippage in a day issue I keep mentioning.
4) Tesla. It took a jump of $5.26 to move the options up $.15 or not enough to make any profits after paying commissions. What a soboring thought.
Trade anyway you like. I don't like Tuesday's option action on short term options. Six month and one year out options are a different thing. Buy and sell these longer term options on whatever day you like. I just don't like playing Tuesday options looking for a three day hold.

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