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Trumph Picks A Friday To Change The Rules.

This is kind of dirty pool. So the stock and options jumped on this news. Did Trumph's cronies get in on this action? It's difficult to tell as they could have got in a few days or a week ago and they could have bought Call options with longer term expiracy dates. Or his stockbroker cronies could have bought the stock to also profit in this gain. Certainly the authors formulating these policy changes were part of this action. In all fairness I can't prove that insiders profited from this Friday event. Yet here is the thing. Releasing this kind of news on a Monday or Tuesday would mitigate this kind of an event from being as impactful as it potentially could be. Option premiums shrink in value the closer you get to their expiracy dates. Lawmakers know this. They should know better than to allow this to happen. No government policy changes that will directly effect the stock market should be allowed on the trading days of the week when the majority of short term Call and P...
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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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