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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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Last Day Options - Tesla

If your new to option trading you wil not have the courage to play "last-day-until-expiring options". I get that. Perhaps a mid week option trade would be better. Find a chart pattern that looks interesting and buy yourself a three day ride. Or safer yet, buy an option on Friday at the close with five days of trading life left in them. Correctly picking the right directional movement over such a time period would instill a feeling of confidence in what you are doing. If you fail in such an adventure what would I advise you to do? Give up? No. Study harder. Now let me throw this one at you. Here is a recap of a blog I posted yesterday where an option trade doubled in price in just less than ten minutes.
In all fairness most newbie option traders would not be purchasing "out-of-the-money"Call options which expire in only a few hours. What I am about to say may sound a tad stupid. If you want to jump into the world option option trading Tesla is one of the top stocks in the world to play options on. Why? Well no one on the entire planet can really understand how Tesla's dynamics change on a day to day basis. It's a "pack mentality" when directional moves either upwards or downwards start to kick in. In only forty or sixty minutes the price of the stock can move up or down significantly. With using "one-day-options" as a trading vehicle the needle on their pricings can move materially over such relatively short periods of time. Case in point is what happened on Friday. Look at this chart. It shows how Tesla traded on that day.
Shortly after the opening it moved into negative territory and then it smartly rebounded. The rebound lasted over three or four hours. What a ride Call option traders enjoyed. Look at the high volume of options traded on this one particular series of Calls. Other series of Calls experienced similiar gains.
Newbie traders are welcome to participate in this trading without really understanding the mechanics of why this is all happening. There are however no guarantees that the end result will turn out like this. *Also read my April 10th blog titled the "End Of The Day" Friday Option Trading on Tesla".

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