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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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The Exercise Of Playing Pfizer Options

Last week I posted a blog about buying Pfizer Calls at the very end of a trading session when the DJIA was down 500 points. Options on stocks that are in $25.00 price range are highly leveraged and it doesn't take much of a move in the stocks price to generate a move in the underlying options. That's the logic behind this kind of trade. Today similiar circumstances (a sizeable drop) are brewing with the DJIA index now down in mid morning trading. Could these Call options rebound from an early morning drop?
Here are two series of Call options to follow and Pfizer's current five day chart.
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Let's see what happens. Here is the 25 series of Calls again in the late morning trading.
Now here is how they closed the day.
This series did nothing all day and the DJIA never came back.
Now this on Wednesday morning.
$.25 to $.36. Now more upward movement and look at the buying volume pouring into them.
Notice the jump tp a high of $.52 ** Thursday morning saw a jump to $.63.
Now this at 2:12 p.m.
Here is how they closed the week.
One week options on $25.00 stocks is a dangerous game to play.

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