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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...

History Tells Us That Pfizer Might Sell Off

Here is how Pfizer traded over the last five trading sessions. $24.00 to almost $26.00 is a large move for this stock in such a short period of time. That doesn't happen very often.
Now this, a look at how this stock has traded in the last three months.
Here is what this one series on "in-the-money" Puts that expire on Friday are now trading at . Today is Wednesday.
So what's going on? Well there is one drug stock that is leading the pack today and helping to drive up the prices of many of the stocks in this same sector. Eli Lilly is on a bit of a terror.
Now the same Pfizer Puts on Thursdays opening. At the nine minute mark on the opening the low and high on these options was $.25 - $.33 .
Then at around 10:00 a.m. Pfizer moved up a touch. Stocks often go up in the first hour of trading only to lose their gains as the day goes on. That's what happened this time. You can see that move upwards on the one day chart below. The Puts dropped down to a low of $.08. Now here is how they closed out the day. These options have one day of life still left in them. What a tough game to play.
Now here is the most important part. Look at how these Puts traded 'minute-to-minute' on the day.
Getting in around 10:00 a.m. and out anytime in the afternoon was the best way to play it. 10:00 a.m. was exactly the top of the day.
It helped that the markets crashed on the day.
Catching this one would have required precision. **** Now a look at Friday mornings action.
$.10 options can suprise especially on days of large market selloffs. *** If you look at my Pfizer blog last Friday you will seek the same rise in price on $.10 Puts. With Pfizer the action started at 1:30 p.m. and ended at 3:30 p.m. last Friday the markets closed down 797 points. It takes these massive declines to make the this $.10 put option trick work. Did i catch it? No. I went swimming in the afernoon. Somtimes option traders need time out.

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