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"End Of The Day" Friday Option Trading On Tesla

Back on April 2nd I did a blog called "Two Hour End Of Week Option Trading on Tesla". In that blog it was noted that Tesla dropped in price starting at 1:30 p.m. and 42 minutes later it was $5.95 lower in price, approaching the "must-get-out" at 3:00 p.m. mandated option deadline. Put option buyers getting in around 2:00 p.m. did well on their investments. (The stock was down $20.67 on the day). Here was it's chart on that day. It was a Thursday with Friday being Good Friday. Now let's fast forward to today's action, it being the following Friday. Tesla options had a tough start to the day. Here an example of what I am talking about. Look at the 347.50 series of Calls at 12:34 p.m. Are you able to see how they are down in price on the day? Now this. A look at how these same options closed out the day. They charged back upwards towards the close. The $140.00 option price we were looking at below is actually a 4:00 p.m. readout. This chart shows Tesla ...
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Tesla Option Trading At A New Level. This Is An Important Read.

Tesla now has option series that expire on a Monday, Wednesday and Friday. A handfull of other stocks shown below have also switched to this same format. Before that they expired only once a week on Friday with traders often wondering if they should jump onboard Thursday seconds before the closing bell looking for a definitive move on the opening. With this new 'three-times-a-week" format traders will be watching the action on Fridays, prior to the markets closing, looking for Monday morning moves. This switchover started back on January 28th of this year. All of the stocks listed below were part of this new change.
Now watch the wild action on one series of Tesla Calls today. First it's five day chart.
Now it's early Monday morning chart. Look at how it has given up it's opening gain. Option traders who bought Call options just before the close last Friday had a morning opportunity to get out at a decent profit.
Now this, a look at one series of its Call options that expire today. Can you see that they traded for over $6.00 a contract earlier in the morning?
Now this about 56 minutes later..
Are these Call options now down and out? Yes they ended up worthless. Let's look at the action after the 3:00 p.m. deadline to get out.
Now let's now look at how one series of Puts did.
What are my thoughts on having options on Tesla now expiring three times each week instead of only once? My first reaction is to say I don't like it. It's going to create a different kind of trader, one who might suddenly only start to trade options on this stock only. If you caught it on the downside today you would have made enough money to take off the rest of the week. Why get a real job, why not just play Tesla options? So here is one thing to consider. One day options, unlike one week or longer term options are stripped of the "time-value" aspect of the equasion. Catch a one, two or three dollar move in the right direction and you will have a quick and comfortable gain. Get in, get out and then do it again. Doing this could become a full time job. Lock yourself in your basement and follow this stock all day. Sound easy? It isn't. I see the potential for one day options trading to becoming an addiction. Imagine the rush from catching corectly the action in two or even three directional moves in one stock in one day. More blogs like this to follow.

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