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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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Mid Week Reversals On Short Term Options. A Topic Seldom Looked At.

As a writer if you get things wrong you quicky lose all creditability. I understand that. In a blog on Pfizer last week I looked at an entire week of it's trading activities of it's series of 25.00 Calls. The exercise was exhausting. This week I am only going to pinpoint one day of it's trading.
Today is Wednesday. Shown above is one series of Call options on Pfizer which only have two remaining days of trading life left in them before they expire. Most option traders dislike options on stocks in this price range for a number of reasons. Twenty five dollar stocks can wander aimlessly for extended periods of time. I get that. Then why would I be stupid enough to be looking at these Calls at this particular period of time? Two reasons. First, there is the chance Pfizer might rebound on the opening. Why? Well the DJIA closed the day down just shy of 500 points. Trumph does strange things which causes market swings. A rebound upwards could happen tomorrow morning for no reason if a more normal market returns. The second reason that Wednesdays are the one day of the susceptible to mid week reversal. Ai can explain this better. Type in "susceptible to mid-week reversal". That's what I would be looking for in this situation. Now this, it's one day chart.
Look now at the volume of contracts opened in the last 15 minutes of trading. Only 26. I don't understand why more traders aren't looking for a next morning bounce. Now let's move on to the following day and look at this 10:20 a.m. readout.
The $30 cent Calls (thirty dollars) are now $54 (fifty four dollars). That's the bounce I was looking for. Take your money and run before a sense of normalcy returns. Now this.
It's closing reading. It fell back close to where it was trading on the previous day.
This is an excellent example of a mid week reversal. Now on to other things.

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