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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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My Fascination With Pfizer Options.

The DJIA index closed up 588 points on the day, a Wednesday after losing 870 points on the previous day.
Now Pfizer's one day chart.
Can you see how it got dragged up in today's action?
Now this. There was no trading in them during the last 2.5 minutes of trading. In some ways that's a good thing.
Could tomorrow's market open down? Here is what it's five day chart now looks like. At 9:32 a.m. this morning it was trading at $25.62 and at 10:02 a.m. it traded down to $24.44. A drop like that on tomorrow's opening would do wonders for these Puts. Let's see what happens. Now this. Thursday morning.
It's not what I was hoping for but at 9:35 a.m. it did drop down to $25.76. You can see that on the chart.
Here is what the markets are doing at 10:33 a.m. These Puts are getting crushed.
An end of the day reading. These Puts are in trouble.
Let's see what happens. Here is it's premarket trading at 8:30 a.m. and 9:00 a.m. These Puts have dropped from $.63 (dollars) when I first started watching them so this blog has being a mistake. Last week when I wrote about this same situation the Puts more than doubled.
Sometimes you see these premarket selloffs occuring only to then watch the markets on them open flat. That often happens with the Tesla stock. As it turns out selling into the premarkets would have gotten you some of your money back as the stock opened flat. Pfizer disappointed this time which I am not happen to report. Last we this strategy turned out wondefully well. Short term option trading on stocks in the $25.00 range is often acknowledged as being a difficult space to be in. I will show you at the end of the trading session how Pfizer closed the day. ** Pfizer went on to have a drop on the following Monday morning. Sometimes one week options are better to play.

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