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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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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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