Featured

Tesla Call Options On A Friday Morning

First, here is what the D.J.I.A index is doing, not that it matters all that much. These Calls are down like 50% from the previous day. Tesla did drop on the previous day, a day in which the market dropped 669 points. Some stocks are having a good morning. Look at Snowflake. Might Tesla wake up and take off again? The same with Apple which had a big fall on the previous day. This kind of nervousness is what Friday morning one day option trading is all about. Some option traders capitalize on situations like this buying instead next weeks out day (five day) options. Let's see what happens. Now this at 12:42 p.m. The DJIA index is creeping up. .. I don't really like the slow creep back up knowing that with any bad market news everything could sell off in a heartbeat. I would just get out. That's me. To be continued. Here is how these Telsa Call were trading at the 3:00 p.m. get out deadline. Now here is how Tesla closed the day. Sometimes taking profits when you see them...

Wednesdays Can Be Turn Around Days for One Week Options. Deere

Deere is a very difficult company to play short term options on. Nor do many option traders try to. Let's start with these two charts. A five day chart followed by a one day chart as we approach noon hour today, a Wednesday.
....
... Now a look at these two series of Puts which will be expiring this Friday. The 512.50 and the 510.00 Puts.
These are thinly traded options with the built in worry of having a wide spread between the bid and ask. In some ways that doesn't matter, knowing that a ten dollar swing would not be out of the norm. More concerning however is the size of the spread on these next sightly "out-of-the-money" Puts. With spreads this far apart they would be difficult to buy into and sell out of without getting gouged. No one is giving away free money.
Here now is how it closed the day. Our reference point as to when we first started looking at this situation was 11:37 a.m..
Here now is how the $512.50 series of Puts closed the day. Basically these Puts held their ground all afternoon. The D.J.I.A. closed down the day 42 points. The volume of options contracts traded in this series we are looking at was next to nothing and the open interest numbers don't add up properly.
With the price of gold so being so crazy and with all of the wars happening wouldn't all machinery building companies be doing well? In this instance Wednesday was not a turnaround day. Now let's jump ahead to Friday's action. Here is a chart showing how Deere closed the week.
The Puts we were watching expired near worthless but did hit a high of $3.50 on Friday morning.
Buying the 510 Calls on the Friday morning dip is where the action was.
Deere is a difficult stock to play options on.

Comments

Popular posts from this blog

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

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

Another Blog On "Vinfast"