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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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Why Hertz Calls On A Early Thursday Afternoon Don't Work

First the chart.
On paper it looks like this chart could rebound. Here is one series of it's "in-the-money" Calls.
Here are three reasons why this situation is to dangerous to play. 1) There is an Avis Budget Group Inc. implosion happening today. A really big one. Read my previous blog. That's not directly related to this company but it makes the sector a bad space to be in. 2) The "bid-and-ask" spread is to far apart which helps to give the market makers some extra insurance. That plus the volume of trading is very light which also seems to give the house an advantage. Look at Walmart. The spread is about the same but you can split the middle without affecting the "bids-and-asks" and the volumes are so much better. I like trading in that kind of space better.
3) Hertz is not the kind of company which comes out with daily or weekly updates. Contrast this to the stock Ford which seems to have good and bad news coming out every other day. With Ford sometimes you can get lucky and catch it going in the right direction for reasons you never expected. With Hertz not so much so. Let's see what happens. Both the Hertz and the Walmart options closed the day unchanged. Friday morning. The Walmart trade turned out to be a smart move with excellent liquidity.
Take your money and run. The Hertz Puts show the agony of this situation. Only one contract traded and a ridiculous "bid-and-ask".
In short term option trading you have to learn to pick your spots. Now the closing two readings.
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