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Step Down Charts And Short Term Options. Nio

Here is a classic "step-down-chart" with one minute of daytime trading life left in them before the markets close at 4:00 p.m.. The stock is Nio. ... This printout of "in-the-money" Call option also shows one minute of trading life in them before the market closes. It's Tuesday and these Calls expire this coming Friday. You are purchasing three days of market trading life. To purchase one thousand shares of this stock would cost you $5,750.00. To purchase options that control the price movement of one thousad shares of this stock for three trading sessions would cost you $370.00. ( Ten contracts at $.37 each). These Calls are also currently $250.00 "in-the-money" which means if the stock totally goes flat for the next three days your options will still have that amount of intrinsic value left in them. Now think about this. Many option accounts in the U.S. enjoy free option trading and there are discount brokers in Canada who can save you money. A fl...
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$5.00 Stocks With One Week Options On Them. Nio

It's all about timing. Is this a good buying opportunity? Chinese built electric vehicles, the news coming out in this space can be exhausting. Monthly auto production numbers are what traders look at. Nio's stock is not being rewarded for this years performance. If a car company on this side of the ocean had growth like this traders would be all over it. It's all a guessing game. Let me now tell you why I like this situation.
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These Calls are now priced at $.08 and the high this morning was $.13. An uptick back up to let's say $5.06 would bring these Calls back up to $.14. What a stupid exercise to be chasing you might be thinking. I kind of agree. Yet the point remains that a small updraft for whatever reason would make this a profitable trade. Can we find guidance in it's five day chart?
What I do know is that I wouldn't want to be playing this series of options if it had only one day to go. As hours tick by you might be stuck in this waiting and hoping that bad news doesn't come out. The last four weeks were very much like this and todays action might not get you anywhere. Any strong opening in the next two days woud help. Options on five dollar stocks can be tedious to follow and depressing if they totally go the wrong way.
Not really. Yet a $.08 to $.12 move is still plausible. I am encouraged by todays action in another auto related stock.
While the two stocks are unrelated it still is an interesting event. So if you were to get into Nio would the stratetgy be to take the first modest profit you see materialize? Yes and no. If you do these kind of trades endlessly would you eventually develop the thinkings that it's it a losers game. For the most part it probably is. Let's see if this time will be different. Here is how the 5 series and 5.5 series closed the day.
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To be continued. Now this.
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Down but not out. The open interest in these options have dropped. FRIDAY MORNING.
There is no right answer to whether these options are playable. In this case getting in at $.03 or $.04 one day before these options expire was the way to go.

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