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You're Not Playing Tesla, You're Playing The Markets. Get Use To It.

The markets crashes on Monday morning after a disastrous friday afternoon sell off. The D.J.I.A. was down last week 1.1% on the week, the largest weekly decline since November. My advise is to take a vacation from option trading for a week or so. Then there is Tesla. Tesla rebounded today, a Monday after dropping a chunk in the first forty five minutes of trading. But wait, at 10:30 a.m. most market observers were congratulating themselves for sitting on the sidelines. Now this, here is how the 382.50 Tesla Calls traded on the day. I will do a follow up on this blog tomorrow and show you the closing interest at the end of the day. If it is very low, which I suspect it will be, it will further illustrate my point as to how Tesla can be a good interday trading vehicle. Now this. Exxon also dropped in price at 10:30 a.m. and dropped again at the close. Look at how the 150 Calls closed on the day. Flip a coin, it could go either way. If you look at my past blogs on Exxon in the last 3...
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Five Day vs One Day Charts. Do Looking A Five Day Charts Give Traders An Edge On What To Expect On The Following Day?

Here are three examples that might help answer this question. Yet we are not talking about any five day period. We are talking about a five day period with the last day in that week being a Friday. That's the day of the week when many options series expire. First a look at a five day and one day chart of Home Depot.
So a perky looking chart formation which is going upwards on a Thursday (Dec 5th) keeps on going upwards on a Friday. Look at one series of it's Call option action below. Very light trading and very little interest. Get in on the upside during the morning small dip on Friday morning and get out at a profit anytime later in the day.
Sticking with Home depot did it's one week out Call options share in a similiar Call option experience? Here are next weeks Calls with the same striking price.
Not really as they jumped 26% on the day versus the 68% increase on the "one-day" options. ..................................................................................................................................................2) Caterpillar. First it's five day chart (which includes Fridays trading) and then it's one day chart.
Now the options.
A big upward swing happened after 12:30 p.m. Would you have the nerve to be buying in this late in the trading session? Caterpillar was on a terror all week. 3) Visa. First it's five day and one day chart.
Look at how these Calls jumped.
What's the bottom line in answering this question? In the case of Visa having access to it's five day chart better helped in recognizing an oversold situation. With Caterpillar the trajectory was up everyday. With Home Depot an oversold situation was somewhat apparent. Yes, in some ways five day charts five day charts have some relevancey in helping to make decisions going forward. :: Deere shuld be added to this list. The stock rolled over on Friday.
The end.

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