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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 On A Wednesday. ( With Options On it That Expire The Same Day ).

Let's start with this chart. Tesla is stuttering after the opening.
Here are how one series of Calls are trading. What you need to know is that these are Call options which expire today, on a Wednesday which are not the usual Friday expiring options I commonly follow. Who would be bold enough to be playing "last-day-to-expiring" options?
Next, Tesla at 1:42 p.m.
...
Now a different look at the same action.
So at 11:08 a.m. thirty three minutes after we first started looking at them they jumped up to $4.50 per contract and at 1.04 p.m. they jumped up to $4.33. These are impressive gains. Now this at 3:00 p.m..
. These Call options have run out of time. 3:00 p.m. is deadline for when retail traders have to be out of their positions.
Tesla can sometimes jump $25.00 in one day. I get it as to why there is a fascination for one day option trading on Tesla, especially when the DJIA trades so erratically on a "hour-to-hour" basis. With this kind of trading you have to learn to take your profits whenever you see them. Unless you're playing with recent profits forget trying to play them. ** Now this. A fresh look at what happened to the 412.50 Puts just before 3:00 p.m..
Is you bought the Puts around 1:00 p.m. you could had made money holding them for an hour or two. With more Call options outstanding than Puts and with options expiring that day the safe bet would be on owning the Puts. Here I am talking about options on Tesla that expire in two hours. I don't know if that is a good or bad thing. Next Wednesday I will do a blog about how it's Puts traded in the last two hours of trading.

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