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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...

Ford Options At The Start Of The Week. Why Try And trade Them?

Ford one week options. It's kind of random. Throwing money into one week Call options on a stock that was down last week.
Here is how the 12 series of Calls are priced going into Monday's opening market.
. If the stock has a good day these options could go to $.90. It's not much of a trade however if you're using a discount broker to do your trading it could be a good "in-and-out" situation. It could also be a real drag if the stock starts to tank lower. Now look at this recent five day chart on Ford. I used it in one of my previous blogs. Ford is known to jump on good news.
Now this question? Does the simplicity of my thinking scare you? I also follow Nio but I don't like the way it trades. Here it is going into todays opening. Nio like other EV companies are battling it out for market share. I don't trust the narratives of what they are up to.
Five day out options (options that expire this Friday) in a way give you a one day free ride, meaning the time value premiums built into the pricings of these Calls options do not dissipate that much over the coarse of one day. Let's see what happens. Here we are now twenty six minutes into the opening action.
If you are trading commission free you could be getting out right now. To be continued. A look at 1:01 p.m.
The D.J.I.A. is down 100 points. So if you jumped in and you are now jumping out it didn't really cost you anything. The ask is at $.73. Can you see how the time value involved in trading short term options didn't really work against you? That's one of the advantages in trading five day out options over options with only one, two or three days of trading life left in them. A morning pop didn't happen however you could have been in the game waiting for it to happen. Welcome to five day out option trading. Ford options are a good trading vehicle. ** An end of day readout.
Now it's five day chart.
It's chart still looks kind of zippy.

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