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Micron Technology. A Nervous Market With Big "One-Day" Option Swings

It's Friday July 31st. Look at this stocks one and five day charts and then look at how one series on Puts which expire today struck gold. First it's one and five day chart. ... I don't know much about this stock however this blog follows the last blog on the topic of buying Puts on spiking stocks. Look at how this one series of Puts below has reacted on this one day selloff. Had I picked a series of Puts further "out-of-the-money" the gains would be even more remarkable. Look at the low of the day which happened on the morning spike and look at where the option is at now! Yet wait the game is not as easy as it looks. How often does a stock drop that much in one day? Not very often. Look at how Apple dropped like 30 points after an earning's release and this series of "out-of-the-money" Puts merely doubled. It could be argued that risk involved in making the trade outweighed any potential reward. If we now go back to our friend, the stock name...
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Tesla On A Friday Morning.

The concept of playing last day until expiring Tesla options scares most people. Maybe it shouldn't. In the list of the five most actively options on all companies traded Tesla would come it at about number two. My next statement is going to sound kind strange. One strategy often employed by dedicated option players is to look for quick reversals on Telsa on the opening on Friday mornings with their soon to be expiring options (at 3:00 p.m.) and see how this situation plays itself out. That's what has happened in the first chart shown below. It sounds silly yet watch them for yourself for the next four or five weeks and see how often this pattern plays itself out. Now here is it's chart at 9:56 a.m. this morning.
It's flat after a dip on the opening. That flat line on the top of the chart shows you where it started the day. The dip on the opening dropped these Calls down to $.85 cents. Now here is it's five day chart. You can see this morning's dip in it's chart.
Now to further set the stage here is how it's Calls and Puts are tradng, at least one series of them.
Now this. Anyone who bought the Calls on the opening dip would have already more than doubled their money.
The action in Telsa options in the first few minutes of trading is often the best action of the week. Yet I am not saying it's easy to play them. *** Here is how Tesla closed the day.

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