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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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A Real Look At Ford On The Opening Yesterday.

The stock opened down and jumped at 9:31 a.m. Look at this chart.
In our last blog I followed the trading pattern of it's Calls all day. Had you placed a premarket, "at-market" ticket on the 12 series of Calls your guarented fill on the opening would have reflected the drop in the stocks price in the first few seconds of the opening. Somewhere between 9:30:00 a.m. and 9:30:59 a.m. the 12 series of Calls dropped in price to $.57. Then in the first five minutes of trading they rebounded to a high on the day of $.76. "At-market", "premarket" tickets in this instance would have guaranteed that you would be part of this action. The flip side of this logic is that there were no guarentees that the stock was going to go up. The use of "at-market" tickets on stocks in this price range with four days of trading life left in them should be included in your bag of tricks. Scarier is the use of this type of order on "last-day-to-expiring" options.

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