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Tesla Calls On A Friday That Expire On Monday

It's the same topic I posted last Friday. Today is Independence Day and the markets are closed. For this reason we can't really talk about mimicking last last Friday's trading. Here is it's five day chart. As you can see Tesla dropped on Thursday. Here is a look at how one series of Telsa's Puts traded on Thursday. Now look at the pricing on this one series of "slightly-out-of-the-money" Tesla Calls as of Thursday's close. These Calls would let you be in all of Monday's trading action. Is the price of $4.60 a contract a fair price? Well consider these two points. One day swings in stocks in general in the $400.00 price range can be significant. This five day chart of Tesla below shows you how it jumped $32.13 last Monday! The second point is that long weekends (three full days of no market trading) are know to cause market resets. Stocks like Exxon can get whipped around. That's what makes the pricings on all options now so difficult to gau...
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Caterpillar Puts On A Thursday Morning With Friday Being A Holiday

First it's five day chart going into the opening.
Now it's one day chart showing a modest selling pressure towards the close of the day.
Is this dip towards the closing a precursor to Caterpillar opening lower? It's difficult say. Here is how two series of it's Puts closed the day.
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Notice the low volumes of Puts and think back to how Caterpillar was trading over $50.00 lower only two days ago. To me these Put options don't truly reflect the volatility of this situation. Now here is how these two series of Puts traded on the following opening.
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I don't understand why more traders didn't see this coming. *** Here is a more detailed look at how Caterpillar traded on the entire day.
The low of the day was at exactly 9:45 a.m. or fifteen minutes after the market opened. It's kind of a suspicious number. Read my April 5th blog which investigates this thought further.

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