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"End Of The Day" Friday Option Trading On Tesla

Back on April 2nd I did a blog called "Two Hour End Of Week Option Trading on Tesla". In that blog it was noted that Tesla dropped in price starting at 1:30 p.m. and 42 minutes later it was $5.95 lower in price, approaching the "must-get-out" at 3:00 p.m. mandated option deadline. Put option buyers getting in around 2:00 p.m. did well on their investments. (The stock was down $20.67 on the day). Here was it's chart on that day. It was a Thursday with Friday being Good Friday. Now let's fast forward to today's action, it being the following Friday. Tesla options had a tough start to the day. Here an example of what I am talking about. Look at the 347.50 series of Calls at 12:34 p.m. Are you able to see how they are down in price on the day? Now this. A look at how these same options closed out the day. They charged back upwards towards the close. The $140.00 option price we were looking at was actually a 4:00 p.m. readout. This chart shows Tesla tradi...
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Why The First Two Or Three Minutes Of Trading After The Markets Drop Over 800 Points On The Previous Day Can Be So Important To Option Traders.

Option traders already know this. The market sometimes pops on the opening after a large one day drop. Yesterday, a Monday it closed down over 800 points. The problem sometimes is that if you put in a ticket in the premarkets to get in on the opening, a "buy at market" ticket you risk getting filled at a ridiculously high price if the price of the stock opens with a gap to the upside. Let's look at how one series of Home Depot Call options traded on the opening.
Today is a Tuesday.
The low of the day on these Call options happened on the opening with a price of $6.46. The chart doesn't show this low priced sale happening. Let me try and explain how this happened. Look at this. Here is where it can get complicated.
The chart above shows a spike at 9:00 a.m. Yet the markets don't open until 9:30 a.m. You can't trade options in the premarkets. If you submit a "buy-at-market" or "sell-at-market" ticket it sits on the books and gets an opening fill of the opening 9:30 a.m. price. Once again that price happened to be $6.36. One of the things this means is that the spike up to and just slightly over $15.00 you see on the screen actually happened at 9:33 a.m. on two contracts. Sellers cashing out on option positions purchased on the previous day would of had to place their sell tickets towards the end of the last few seconds of the first minute of trading or at the beginning of the second minute of trading to catch this top of the day trade. If they were to do a premarket "sell a market" ticket they would have got a $6:34 fill or if they would have specified a price like $10.00 they would have got their fill somewhere in the first three minutes of trading. Other stocks also jumped. Boeing opened $.32 cents open and reached it's high of the day at 9:36.00 a.m..
Caterpillar dropped on the opening and it came charging back up again.
Ford opened five cents lower and then jumped.
Many other stocks did the same. Learning when and how to buy in super important. Opening markets are a big part of option trading.**** Now forget Home Depot for a moment. Let's mention what Lowe's C.E.O. said about business on the release of their current quarterly profit.
The narrative of what is happening within this industry is often exhausting but it is something we are living. As a trader I don't particulaly like options on stocks in this segment of the market. They are to fickled. That plus news as to what is happening in this sector seems to always come from to many directions. *** Home Depot on the following day.
It's difficult to stay current on all this activity.

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