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A Classic $Tesla Friday Option Day Story

So Tesla moves up in the first few minutes of trading on a Friday and quickly decides to go south. The DJIA closed down on the day 685 points. Here is how one series of Puts, the 425 series of traded on the day. A low of $4.11, the price the 425 Puts just after the opening and a closing price of $33.90. More surprising were the "out-of-the-money 410 Puts. A low of $.33 and a high of $21.28. The most extreme gain was with the 392.50 Puts which has a low of $.03 or three dollars a contract and a high of $4.12 or four hundred and twelve dollares. Do the math of that one. How many times has this website talked trading "one-day-until-expiring-options" on Tesla options. The answer is many times. There was news this week about Musk raising 75 billion dollars for "Space X" and in doing so is selling out only 4-5% of this new company. Musk is the richest man in the world. Powerful people can make powerful moves. So what's my point? My point is that the option mark...
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You're Not Playing Tesla, You're Playing The Markets. Get Use To It.

The markets crashes on Monday morning after a disastrous friday afternoon sell off. The D.J.I.A. was down last week 1.1% on the week, the largest weekly decline since November. My advise is to take a vacation from option trading for a week or so. Then there is Tesla. Tesla rebounded today, a Monday after dropping a chunk in the first forty five minutes of trading.
But wait, at 10:30 a.m. most market observers were congratulating themselves for sitting on the sidelines. Now this, here is how the 382.50 Tesla Calls traded on the day.
I will do a follow up on this blog tomorrow and show you the closing interest at the end of the day. If it is very low, which I suspect it will be, it will further illustrate my point as to how Tesla can be a good interday trading vehicle. Now this.
Exxon also dropped in price at 10:30 a.m. and dropped again at the close. Look at how the 150 Calls closed on the day.
Flip a coin, it could go either way. If you look at my past blogs on Exxon in the last 30 days you will see that Exxon is a very volatile stock. Not many traders are trying to play them. Now a follow up to my previous blog of last Friday on Boeing's afternoon jump up in price on an announcement of China submitting a big airplane order. Boing dropped today just over $6.00.
Fuel has jumped in price. The next time Boeing reports a big order just stay away. Last week we also talked about playing the 1,000 series of the Costco options. The action on it's Calls today followed the same play book as the Tesla Calls. Look at it's one day chart and observe how some of it's Call options played themselves out.
Lucky option traders today where the ones who jumped in at 10:30 a.m. It doesn't always happen like this. To me option trading makes more sense than stock trading. Things happen quicker. There is learning curve. Don't buy Boeing Calls when new orders land on their books. Don't buy Costco next day options on a Thursday. There is a whole bunch of things not to do. Stick with this site. * Here is the option number of the 382.50 series of Calls I was talking about going into the next days action. An open interest of just over 500 contracts. On the previous day 2,437 contracts traded.
The option traders who profited on Tesla's upward spike are now long gone.

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