Who Is Going To Get Rich Playing Options On Space X Technologies?
It's symbol is SPCX. It is my opinion that in the near term Tesla options will be more playable than these new the Space X options. Playing options on Tesla over the last few years has become a comfortable experience for many traders. They have a personality. Often times the stock will jump or fall ten or more dollars on the day and there seems to be an endless scource of fresh news as to what is happening with this company. What's happening with it's German production, what's happening with it's sales number in Australia, what's happening new models coming out and new self driving features? I doubt in the near term if the news on Space X will be as engaging. I could be wrong. All I know is that Telsa's last day to expiring options often offer roller coaster rides. But wait, as we all know there is a new kid on the block. Space X options are now here. Traders don't know what to expect. Here is how it traded on Thursday which happened to be the last trading day of week as Friday was a holiday. Look at how the 180 series of Space X Calls on it traded on the day. Note the high volume of trading on this particular series of Calls. Now look at how the stock traded on the day. It was down almost $7.00. Imagine having the guts to buy into the 180 Calls around the noon hour. Yet why would you? Is that what the chart would be telling you to do? Do traders already have predetermined risks levels etched in their thinkings? It seems so. Now lets look at these two series of Calls and Puts which will expire at the end of next week. Options that expire in five days do buy you a lot of time. First the Calls. Forget the "open interest numbers". Sometimes there is a delay in reporting them. Now the Puts. Notice there is more trading in the Calls than in the Puts. That's a common occurance. Notice also that both the Calls and the Puts are priced in the $10.00 range. Telsa is now trading for double the price. Let me quickly show you what it's one week Calls and Puts look like. Shouldn't the Telsa options cost more the the Space X options? One stock costs $400.00 and the other costs $185.00. One would think that the Telsa options would have bigger price swings? Let's quickly look at the pricings on Boeing, a stock which is currently slightly above in the $200.00 range. How expensive are their one week out options? Look at how much cheaper they are than the Space X options. All I know is that we have a new kid on the block (Space X) basking in a new world of uncertainty. Trying to play it's options is an expensive game. I like Tesla options better. **** A 9.55 a.m. look on Monday morning.










Comments