Featured

Tesla Calls That Expire In 55 Minutes On A Friday.

First it's five day chart going into Friday's mid afternoon.
On the surface it appears that there there is no quick way to make money on this situation, if there was everyone would be playing them. Hold that thought. Look at these Calls which now expire in 55 minutes (for retail traders on Fridays) and look at the open interest number from the previous day.
Why does it only read 290 contracts. Doesn't that number seem small? Well it has to be remember that yesterday the stock closed just over $12.00 higher so these were expensive "in the-money" Calls at the start of the day hoping for a bounce which they got. Smart traders may have played the stock both up and down today. Let's look at the 450 Calls and see what yesterdays closing interest was.
The open interest in the "at-money" contracts on yesterday's close was just shy of 6,000 contracts. Yes the interest in playing one-day to expiring Telsa options is huge. So at this time of the day the damage is done. The overnight Call holders had the chance to cash out with a decent profit in the premarkets or in the morning and even greater profits if they switched gears and played it the opposite way. Tesla trades like that. Let's now look at it's one day chart at 2:27 p.m.
It's had a four hour straight drop. Look at the 2:05 p.m. $437.50 Calls now trading at $1.45. Guess who is buying them now? Traders who are triple dipping, meaning traders who sold out of their Calls during the morning rally and who then picked up some Puts and who have now sold them out. If they win or lose on this last little trade it really doesn't matter. At 2:47 p.m. you can say thank you at cash out again.
$1.45 to $3.95, in at 2:05 p.m. and out at 2:47 p.m.. Almost 15,000 contracts traded during this period of time. My hope is that this blog is a wakeup call. I understand that my presentation styles might need some refining. What I want my readers to know is that Telsa one day option trading can at times be a playground.

Comments

Post a Comment

Popular posts from this blog

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

Image
Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slightly out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-ma...
Read more

Waiting For A Drop On The Opening On Bad News - Eli Lilly

Image
Here is the bad news. The company is Eli Lilly. How bad is this news? Well look at it trading in the premarkets. So what do I think? I think the news is a setback of sorts, but not really all that bad. The stock is going to open lower, that's a given. It's like trying to play Boeing after an announcement that an airplane has crashed. So the stock is going to crash and it might have a small rebound and then it's going to slide down some more. A test of sorts will happen sometime in the afternoon. It might stock falling but then where will it go from there? The best case scenario is a recognition that investors got it all wrong and the stock ends up flat on the day. Yet there might be more of a downward dumping of the stock on the close followed by a selloff on tomorrows opening. Should option players be jumping in to play the upside on next week's Calls? That is the question. Here is a look at Boeing on the days after a crash. Day two after the crash was equally as ...
Read more

Another Blog On "Vinfast"

Image
There is so much to read about this companies history online. Do your own homework. Their success is not dependent on what ends up happening with their sales in North America. They are nimble. There are plenty of auto factories all over the world now for sale they can acquire. They have dabbled in Australia. Having access to money to keep going doesn't seem to be their problem. Rivian also seems to enjoy this advantage. Vinfast is currently building a new plant in India which could employ thousands of people. That's an emerging new market. New relationships are being built and new investors will be coming onboard. Are option players looking at this stock? Not really if we look at these "one-month-out" Calls. What about Calls further out? What about next January? Here is a look at the three and four series of Calls. Nobody seems willing to bet Vinfast Calls. Now this. Here are two snippets taken from a blog I wrote about this stock back in early December of 2024. ...
Read more