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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 below is actually a 4:00 p.m. readout. This chart shows Tesla ...
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Caterpillar Drops $60.00 In Five Days - Noon On A Wednesday

In past blogs I have mentioned how light the volume of trading is in Caterpillar options. Trading them is a challenge. Deere options are also like this. Caterpillar can and does (in recent times) swing $10.00 on any given day. It is noon on a Wednesday and this the one day of the week where you can look for reversals on "one-week" options expiring on Friday. I have talked about this many times before. Here are it's five and one day charts.
Now a look at two of it's Call option series.
The 560 series actually offer excellent value given how large it's morning drop was. Who cares to check the news on it? When it drops this much this quickly the bad news, if any, is already baked into the equastion. Now the second series of Call options I am showing you are $44.00 "out-of-the-money" and expire in 2.5 days. "Out-of-the-money" Calls to this extreme are a speciailty item. In layman's terms they are a longshots. They can be excellent trading vehicles if you happen to catch a reversal in a stocks move. A reversal of like fifteen dollars over two or three hours in the near term (like today) and not on the last day they expire would move the needle on these ones. You don't need a full $44.00 reversal. One caveat is that the wide spreads can be a detriment to you in the trading experience. You have to be more than fair in picking an exit price. More about that at another time.
Now this just after 1:00 p.m.
In just 59 minutes you could exist this position with a modest profit. Or look at these ones. The stock is up $3.90 from when we last looked at it and the extreme "out-of-the-money" Calls are actually down in price. It's going to take a ten dollar or so upward swing to get this series of Calls up to a double in price. Let's see what happens.
To be continued. Notice on all of my most recent blogs I have taken the approach of getting in and out on the same day. To be continued. So here is how the 560 series of Calls closed the day.
What about the Dec.19th Calls with the striking price of 605? Here they are. They didn't do very much.
Now this, a one day chart of how Caterpillar traded. Can you see the bounce from noon to 1:00 p.m.?
...........
.......... It might jump $20.00 tomorrow. It was down $27.02 today. It's Caterpillar. Here also is how the markets closed on the day.
I didn't have an afternoon rally.

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