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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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Ford Options On A Monday Morning With The Markets Expected To Open Slightly Lower

This is a simple set up. Can you play the stock Ford on the upside and make any money? There are no earning reports or anything crazy expected to happen this week. Nor are any monthly production level reports expected. What sometimes throws the stock off are recall announcements. It is afterall Ford. That's a wild card. Last week Ford was down two cents on the week and was the fourth most actively traded stock by share volume on the NYSE. Here is it's five day chart.
Now let's look at it's this week's 13 series of Calls and take the perspective of buying a block of twenty-five contracts at one time. That would cost $28.00 times twenty-five. Often we see blocks of 25, 50 and even 100 contracts trade at one time. Here we are ten minutes into the opening markets. Monday mornings are usually not the best of times to be purchasing one week until expiry Calls. Afternoons present better buy in opportunities. That's just the way it usually works.
In past blogs I have referenced watching Ford options move in price is like watching paint dry on a wall. In these somewhat volatile markets that is no longer the case. Bad news already by 9:56 a.m. Ford is off in price.
Can you already feel how this exercise is becoming a waiting game? It's not anything like buying Tesla Calls on a Friday morning where the action can be explosive. There was news at 10:12 a.m. Here it is.
The stock is selling off more.
In reality the benefits of such an arrangement with Amazon will takes many quarters to unfold. Now here is how Ford closed the day. Their Calls sold off half price!
.....
Here is how the DJIA closed.
. It was the Puts that were the star of day. Go figure from looking at the opening chart.
Now here is an interesting chart showing when the action in todays Puts started to kick in. The ride started at 1:00 p.m. mark and ended around 3:00 p.m.
In my blog about Pfizer last Friday, a day the DJIA dropped 797 points in one day the same type of $.10 Put action happened. In that instance the action started at 1:30 p.m. and ended around 3:30 p.m.. Is this trading action a trend on days the markets take a real grubbing? I will continue to comment on this series of Calls for the remainder of the week. Can you see how such a simple blog can suddenly get so complicated? Now Tuesday's action. Look at how look low the Calls traded down to. There was a bit of a rebound in the markets on Tuesday afternoon.
To be continued. Now Wednesday.
On Thursday there was talk of a fire.
***** A look at the action going into Friday morning.
Here is how the stock traded in the last five days.
Things were out of focus. Let's also watch the 12.5 series tomorrow with only one day of trading life left in them. Here they are at 12:24 p.m. on Friday.
Fires don't help the cause.

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