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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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Two Hour End Of Week Option Trading On Tesla

I didn't catch it but it was there for the taking. Options on Tesla are one of the world's most actively traded options. Tens of thousands of these contracts trade everyday. It's best to trade them using only recently made profits. At 1:20 p.m. Tesla was trading at $366.00 and then forty two minutes later it was trading at $360.05 That's a $5.95 drop. It's one day chart shows us that move however it is barely noticeable. It had larger drops than that earlier in the day. Here is it's five day and one day charts.
Here is a better one day chart.
It's drop starting around 1:20 p.m. is more noticeable with this chart. The Call and Put options expire at 3:00 p.m.. Now this.
This chart shows us the timing that these Puts jumped in price. So here is a question. Who is going to be stupid enough to be playing around with Tesla Puts that expire in less than two hours? The answer is traders clued to their computer screens watching these options go from $1.00 to $1.25 to $1.75 to $2.00 and beyond in a matter of minutes. Knowing that there is a possibilty that this could happen means that a small subsection of short term option traders are on call to reacte to movements like this. The scary part is that automated trading systems can be programmed also to catch this kind of action. I would now like to end this blog with a reference to a blog I did on March 31st entitled "Caterpillar,Telsa And Nivdia Puts On A Thursday Afternoon". It's 3:40 p.m. Tesla was up $16.60 on the day and the DJIA was about to close 1,000 points higher. In the closing minutes of trading I pinpointed it's Puts move up from $190.00 a contract to $365.00 a contract in the last few minutes of trading. Mid to end of the week Puts, on "end-of-day" option trading on Tesla can be at times very profitable.

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