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One Day Options On One Of The Most Difficult Stocks To Play Options On. Carvana

Carvana has a dubious reputation. Insider stock manipulation. That's old news. Who knows what is going on now to cause the stocks volatitity. You Tube videos about this stock are curiously asking if they are pulling their numbers out of a hat. Here is it's five day chart and here is how their "two-day-until-expiring" Call and Put options are positioned going into tomorrows (Thursday's) trading session. .... Both are crazy expensive however they do offer two days of trading activity. That's a long time for options on a stock like Carvana. Look at the dip and the rebound it had on Wednesday. Now I am jumping ahead to Friday, the final day of trading on these two series of options. Look at this. First a five day chart showing Thursdays and Friday's action. Now it's Friday only chart. So what's important about this one day chart? This. Look at how it's Calls options traded. The Call holders lost all their money. Now look at the Puts.Thi...
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When All The Drug Stock On Your Watch List Are Down.

Can you pick just one stock on this list for a rebound? Here is my list.
Now let's look at Pfizer. I don't like trading short term options on Tuesdays because I know Wednesdays are better days to be looking for meaningfull reversals.
When the morning dust settles might these ones look promising for a rebound? The stock is down almost one dollar. The opening market have traders wondering if they should be buying into this dip. What happens if the markets decide to drop 500 or 700 points? Now, here we are 15 minutes later.
Can you see with these "in-the-money" 24.5 Calls the option makers have widened their bids and asks. They are getting defensive as this could be an inflection point. At the same time the 25.5 Calls which we first looked at now further "out-of-the-money" have taken a beating. Here they are.
Look at this chart at 10:39 a.m. Just the fact we are only about an hour into the trading session tells me that it is still to early to be looking for a reversal. That plus a recent second downward spike in the stocks price is not a good omen.
Now this at 10:41 a.m. Things could be bottoming out here.
Now let's jump ahead to 1:09 p.m. and look at the indexes.
On a percentage basis Pfizer has sold of more than other drug stocks. If things reverse it might be one of the first to rebound.
I would be getting into the 24.50 Calls now. Note the stock is down so I have shifted my attentions to a striking price one dollar lower. One thing I also know is that Friday options will buy you a lot of time. If you got in now what would have happened? Let's turn our attentions to the closing day's readings. That's over 3.5 hours away.
The stock started to come back. Here is how the indexes closed. Not everything came back as the DJIA closed down over 300 points.
How did the 24.50 and 25.50 Calls we feverously watched all day turn out? Here they are.
.......
Back at 1.16 p.m. the 24.5 Calls were trading for $.72 and the 25.5 Calls were trading for $.13 . On the close the numbers were $.95 and $.28. So what does that mean? It means that "out-of-the-money" Calls which were a higher risk outperformed an option with a one dollar lower striking price. A higher risk, a higher return. Here is a good look at how the stock traded today.
Catching reversals on a down day is not everyone's cup of tea. What scares me is that Ai trading may get better at playing this same game.

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