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Tesla Calls On A Friday That Expire On Monday

It's the same topic I posted last Friday. Today is Independence Day and the markets are closed. For this reason we can't really talk about mimicking last last Friday's trading. Here is it's five day chart. As you can see Tesla dropped on Thursday. Here is a look at how one series of Telsa's Puts traded on Thursday. Now look at the pricing on this one series of "slightly-out-of-the-money" Tesla Calls as of Thursday's close. These Calls would let you be in all of Monday's trading action. Is the price of $4.60 a contract a fair price? Well consider these two points. One day swings in stocks in general in the $400.00 price range can be significant. This five day chart of Tesla below shows you how it jumped $32.13 last Monday! The second point is that long weekends (three full days of no market trading) are know to cause market resets. Stocks like Exxon can get whipped around. That's what makes the pricings on all options now so difficult to gau...
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Tesla - Intraday Trading. It's Not Usually This Easy.

Last Friday's blog covered the same topic. Here we are on Tuesday after Monday being a holiday. Tesla down $12.58. We are looking at Call options five dollars "out-of-the-money" with 1.5 days of trading life in them.
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Now this. A bit of a pop after lunch.
Now here is how the stock traded on the day. Can you see how the exit point at 2:10 p.m. was a tad premature. Yet look at how smooth a ride it was.
What did these Call options ended up trading for at the end of the day? Well it doesn't really matter. My last blog about playing Tesla showed the vary same thing happening. Yes you can play these options if you time it right. Timing is everything. Thousands of traders are tuned into this action.

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