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So Tesla Drops On The Opening On A Tuesday

It's chart. A look at it's Calls. A look at Tesla a minute or two earlier. Can you jump in the play it for a rebound? These Calls are down 50% on the opening. So we are experiences early morning market jitters. Tesla was down $37.12 last week. That's like $5.00 everyday. Is looking for an upward reversal simply wishful thinking? Hold that thought. Now this, another shoe has fallen off. A new thought. 10:00 a.m. often times are for lack of better words "points of inflection" or better yet, "points or pre-inflections". There is no reason for the stock to stop dropping but computer buying programs can kick in willing to accept the obvious degree of risk. Is that at 10:07 a.m. what we are looking at now? I don't like trading Tesla this early in the week with it's option series that expire this Friday. Let's walk away from this situation and check back in later to see what ends up happening.
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How Option Makers "Close The Door" On Afternoon Last Day Option Trading"

This is something which affects retail option traders which I have never really paid much attention to before. Option makers steer option traders away from chasing the option market between 1:00 p.m. to 3:00 p.m. on "last-day-Friday-afternoon-options". It's particularly noticable on certain stocks like Exxon. I came apon this after writing a blog about trading friday morning one day Call options on Exxon. Look at the "bid-and-ask" on this series of Calls on Exxon at 1:11.p.m.
Look at how wide the spread is. Sixty one cents! That's crazy wide and if your stuck in a postion that you want to get out of at a fair price well good luck. Placing in a sell ticket by spliting the difference between the bid and ask would probably cause the bid to drop. This would force you to lower your asking price once again. In other words the liquidity is not there. This is in spite of it's mornings option trading being brisk. In all fairness there may be other reasons for these unusual price spread isssue which I am not privy to. News for example of world events which are getting amplified. That could be part of the issue. Here is what chatgpt says. .
So yes option traders are closing the door on last day/last afternoon retail option traders. So yes option trading mechanisms are helping the house to hedge their bets. My most recent morning blog about Exxon Calls gives proof to what I am saying. Tesla afternoon one day Call and Put options can on the other hand prove to be different animals.

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