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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 below is actually a 4:00 p.m. readout. This chart shows Tesla ...
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Tesla And One Of The Busiest Option Games In Town.

Here we are on a Friday morning with the DJIA index down over 1,000 points in the last three days of trading. Short term Puts nearly double everyday.
Now look at Tesla's one and five day trading charts. Tesla was bombarded all week about news of autonomous driving. The narrative was relatively upbeat.
Now at look at this series of Calls. Might Tesla suprise to the upside on the day? They did on the opening and then they dropped.
Now this, how the indexes are doing at 11:15 a.m. They are only a tad better than when we first looked at them.
..
Knowing that Friday afternoons can be a rough ride do you take a modest profit and get out? We did afterall miss the low of the day in this option series and part of the mini ensuing rebound. I would. Now this at 1:41 p.m. just under two hours later. The party for these Calls is over.
This was a bad week for the markets. A short part two. Can you buy Calls on Tesla at $2:00 p.m. that expire at $3:00 p.m. That's the time of the day these options expire on a Friday even though the markets keep trading to 4:00 p.m.. Here they are at 2:04 p.m. This time we are looking at a different series of Tesla Calls with a lower striking price. This time we are looking at the 370 series of Calls which are "slightly-in-the-money".
The answer is no. They went south after that.
Here above is how the markets got weaker on the close. Now for something else to point out. Tesla has tight bid and asks all the way until the closing bell. Look below at the stock Home Depot as an example and look at how far apart their spread is with their soon to be expiring options. If the markets suddenly started to go in the wrong direction imagine the fill you would get if you ever tried to get out.
Credit has to be given to the clearing systems for keeping the bids and asks tight. I like trading Tesla, Walmart and Ford options for this very reason.

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