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"End Of The Day" Friday Option Trading On Tesla

Back on April 2nd I did a blog called "Two Hour End Of Week Option Trading on Tesla". In that blog it was noted that Tesla dropped in price starting at 1:30 p.m. and 42 minutes later it was $5.95 lower in price, approaching the "must-get-out" at 3:00 p.m. mandated option deadline. Put option buyers getting in around 2:00 p.m. did well on their investments. (The stock was down $20.67 on the day). Here was it's chart on that day. It was a Thursday with Friday being Good Friday. Now let's fast forward to today's action, it being the following Friday. Tesla options had a tough start to the day. Here an example of what I am talking about. Look at the 347.50 series of Calls at 12:34 p.m. Are you able to see how they are down in price on the day? Now this. A look at how these same options closed out the day. They charged back upwards towards the close. The $140.00 option price we were looking at was actually a 4:00 p.m. readout. This chart shows Tesla tradi...
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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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