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

Carvana has a dubious reputation it can't shake. Insider stock manipulation or something like that. That's old news and now there are more new fears over their accounting procedures and with that comes stock volatitity. You Tube videos also talk about this situation. 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.
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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.This series of Puts we are watching did wonderfully well as did the series of Puts with a higher striking price we were looking at on the closing on Wednesday.
Now here is what really happened. The stock closed Thursday at $427.44, opened at $425.21, jumped back up to $427.50 which was $.06 higher than the previous day's close and then tanked after that in the first nine mintes of trading.
In these nine minutes the Puts exploded in price. Anyone buying a Put contract at the 931.00 a.m.-932.00 a.m. time period at $370.00 dollars per contract would of had an exit point if they wanted at the $1,950.00 ptice point ten minutes later! Carvana regularly produces unexpected price swings. If it happens on a Friday it can become a really dangerous game.

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