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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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Safety In Puts That Have Dropped 50% Going into A Tuesday Afternoon Trading Session. The Stock This Time Is Goggle

First the one day chart.
Now the DJIA.
Now the Puts.
The stock is up almost $7.00 on the day. Market makers might hope for a flat afternoon in general so that extreme moves settle down before the close of the session. If Google comes off a few dollars in the afernoon these Puts could gain a few dollars. They are afterall off in value by 50%. This is a highly leveraged situation. Let's see what happens. Here they are, twenty two minutes later.
How the open interest number shrunk that much doesn't make sense. To be continued. Here is how these Puts closed the day.
The DJIA index never came back. One of the nice things about using Puts as a trading vehicle on a Tuesday that expire on Friday is that the issue of time value remaining is not really part of the equasion. On Thursdays they very much are. One final thing. The use of Puts which are down 50% in one day as once again, a trading vehicle. Can you see at the closing they were down 33.97%. So they lost half their value on a strong opening and gained back some of it as the stock slightly weakened in the afternoon. Tuesdays are good days to be using short term Puts to method to catch strong stocks losing their morning steam. * Next days opening readings.
** Here is how Google and the 340 Puts closed the week followed at the very bottom by the 330 Calls for next week.
Google moves with the indexes.

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