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A Classic Tesla Friday Option Day Story

So Tesla moves up in the first few minutes of trading on a Friday and quickly decides to go south. The DJIA closed down on the day 685 points. Here is how one series of Puts, the 425 series of traded on the day. A low of $4.11, the price the 425 Puts just after the opening and a closing price of $33.90. More surprising were the "out-of-the-money 410 Puts. A low of $.33 and a high of $21.28. The most extreme gain was with the 392.50 Puts which has a low of $.03 or three dollars a contract and a high of $4.12 or four hundred and twelve dollares. Do the math of that one. How many times has this website talked trading "one-day-until-expiring-options" on Tesla options. The answer is many times. There was news this week about Musk raising 75 billion dollars for "Space X" and in doing so is selling out only 4-5% of this new company. Musk is the richest man in the world. Powerful people can make powerful moves. So what's my point? My point is that the option mark...
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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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