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Tesla Calls On A Friday That Expire On Monday

It's the same topic I posted last Friday. Today is Independence Day and the markets are closed. For this reason we can't really talk about mimicking last last Friday's trading. Here is it's five day chart. As you can see Tesla dropped on Thursday. Here is a look at how one series of Telsa's Puts traded on Thursday. Now look at the pricing on this one series of "slightly-out-of-the-money" Tesla Calls as of Thursday's close. These Calls would let you be in all of Monday's trading action. Is the price of $4.60 a contract a fair price? Well consider these two points. One day swings in stocks in general in the $400.00 price range can be significant. This five day chart of Tesla below shows you how it jumped $32.13 last Monday! The second point is that long weekends (three full days of no market trading) are know to cause market resets. Stocks like Exxon can get whipped around. That's what makes the pricings on all options now so difficult to gau...
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Why It's Difficult To Play Options With Four Trading Days Left In Them.

The premiums are to expensive. Here is what I mean. Look first at Nvidia.
Now look at the price of it's end of week Calls and Puts. Do you see the prices of $7.14 and $720.00? Those are both crazy high numbers.
If we look at Walmart it's the very same story. Super expensive Calls and Puts if we are looking four days out.
Suprising Exxon with a much more interesting five day chart have options that look somewhat reasonably priced.
Look at how few Exxon Puts there are outstanding compared to the Calls. Few traders see any positive Middle East developments. Now consider how this narrative is so much different than the one day action I talked about yesterday on Nvidia's last day to expiring options. One day options offer so much more action. Let's revisit this blog over the next few days or so to add more commentary to this story. Now the Puts on Exxon at the close on Wednesday.
Let's check back on Friday's close. * Nvidia went from $222.32 down to $215.33, Walmart went from $133.34 down to $120.27 and Exxon went from $160.49 to $154.87. When we first looked at the Puts on Nvidia the 222.50 series were trading at $7.20 and they ended up today closing today at $7.19. The Walmart Puts we were watching went from $3.10 to $12.99 and the Exon Puts went from $4.10 to $5.10. Four-day-out options are not my favorite options to trade.

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