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Drone Stocks On A Really Bad Day

I did the math. The average one day drop on Friday on these five drone stocks was 13.93%. The D.J.I.A index on that same day was down almost 600 points. I don't play options on any of the stocks in this sector of the market. $Unusual Machines the most expensive of the six dropped down the most at 18.36% It now trades at $26.37. It has weekly options on it. Here are it's thirty and five day charts. What a nice run upwards it had last month. ... Now this. A look at how one series of it's Call options closed out the day. I see something I don't like. It's the small open interest numbers. That to me means poor liquidity whenever it comes time to execute a trade. That plus after such a big recent run upwards you would expect to see higher volumes of option trades. I have often talked about how I like trading $Walmart options because the bids and asks are so tight with instant fills. What about the other mentioned drone stocks on this list? Are they more playable? Let...
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Nvidia Options On A Tuesday Morning.

Itching to find something to do in the markets on a Tuesday morning? Well it's not a typical Tuesday morning from a trading perspective because Monday was a holiday and the markets were closed. Traders are just getting back to work. What about Nvidia options that expire at 3:00 p.m the next day? You're gauranteed that the liquidity found in these options will be great. The markets are opening somewhat sideways with some strenght in the Nasdaq as shown as of 10:20 a.m..
The real action happened in the first few minutes of trading which is commonly the case. Look at this early morning readout of Nvidia just ten minutes into the trading session.
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What do we see happening? Focus on it's chart. Nvidea closed at 215.62 and opened at $215.70. Then it moved up slightly like it did on it's previous Thursday's opening and to a lessor degree on it's Friday opening.(This is a one day chart as of 10:45 a.m.).
In the very first two minutes of trading the Puts slipped down to $.70 cents. It was a case of buying in on the slight upward spike in the first minute of trading. "Slight" but still enough to cause "Option prices" at that time point in time to get squeezed. Just pick an usually low number and have a resolve that tells you this upward move would be short lived. "At market" would work but who knows what kind of a fill you would get! My point is that this is a "catching the right point trade." The best action in short term option trading often happens in the first sixty seconds of opening trades. That's when everything is still a bit of scramble. *Now an noon update.
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One takeaway? Options on stocks in the $200.00 dollar price range offer the potential of moderate price swings. Short term option traders know this. In contrast. option premiums on stocks the $600.00-$1,000.00 price range cause you to invest so much more. It's just not as comfortable a position to be in.

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