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Why Hertz Calls On A Early Thursday Afternoon Don't Work

First the chart. On paper it looks like this chart could rebound. Here is one series of it's "in-the-money" Calls. Here are three reasons why this situation is to dangerous to play. 1) There is a Avis Budget Group Inc. implosion happening today. A really big one. Read my previous blog. That's not directly related to this company but it makes the sector a bad space to be in. 2) The "bid-and-ask" spread is to far apart which helps to give the market makers some extra insurance. That plus the volume of trading is very light which also seems to give the house an advantage. Look Walmart.The spread is about the same but you can split the middle without affecting the "bids-and-asks" and the volumes are so much better. I like trading in that kind of space better. 3) Hertz is not the kind of company which comes out with daily or weekly updates. Contrast this to the stock Ford which seems to have good and bad news coming out every other day. With Ford so...
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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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