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Tesla Calls On A Tuesday That Expire the Next Day

Would you play one day "out-of-the money" options on a series of Calls that are already down 75% on the day and expire the next day? Seems kind of stupid right? I am talking about Tesla. Tesla trades on the Nasdaq which is taking a beating. Why buy in here at this particular period of time when the support levels on it are still few dollars lower? Why buy Calls with only 1.5 trading days life left in them? Well at 1:00 p.m. the afternoon portion of the market is about to begin and these options are trading at their lows of the day. "One-day-option-traders" have to think in terms of what might happen in the next two hours or so. If a rebound happens in the next two hours just get in and out. These types of option traders take risk on chart patterns that have yet to make reversals. It's can be a lonely and expensive game to play and if the desired results do not pay off one must quickly revert to different strategies. How the closing chart looks today will hop...
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Options On A Monday Morning On Nvidia That Expire At The End Of The Day.

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Options on Nvidia are widely traded. There are options on it set up to expire three times each week. Monday, Wednesday and Friday. Nvidia is on a terror as earnings keep skyrocketing upwards. Here are it's thirty and five day charts. Imagine buying last weeks Call options on the close last Wednesday and getting out on Friday? What a score that would have created. Now look at Monday morning's trading action. Now shown above is how the stock is trading on the opening. It is up. Didn't it's perky chart look like that might happen? These are "step-up-charts" which you don't see very often. It's 220 series of Calls are up 271% twenty minutes into the trading action on 110,800 contracts! But wait. We first started looking at the 215 series of calls however suddenly we are tracking the 220 "out-of-the-money" series of Calls. What's that all about? Can you see how dangerous a game this can be considering that these are "last-day-to-expira...
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McDonalds Was On A High This Week Before Common Sense Kicked In

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There was news. McDonald's is winning at drawing it's customers back in. Quarterly earning were released this week. The stock jumped on Thursday on this news. See this chart. Now it's Puts trading on Friday, the day after. Logic has suddenly set in. With gas prices so high who can afford the gas necessary to drive to a McDonalds? A low of $.10 to a high over $5.04. (See the small Friday morning opening bounce upwards which would have driven the Puts at that time down to the $.10 price range). What a trap. You should you be thinking about opportunities like this. Sometimes they happen out of the blue. ** Ask Chatgpt why Mcdonald's stock dropped so much on Friday.
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Boeing Has A Strong Opening And Crosscurrents In Mid Week Short Term Option Trading.

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Look at it's chart. Now how one series of it's Call options closed the previous day. Now it's ten minute action. The $2.81 price is now $7.70. How do you now feel about looking at the downside? Look at these details. .... Reversals are more likely to happen in the afternoons, not the mornings. I like midweek option trading on stocks in the $225.00 price range. Now here we are at 12:59 .p.m. Nothing has really changed. That kind of makes sense because it is exactly at the point of middle of the week trading. To be continued. Now a 2:37 p.m. update. The NASDAQ is super strong. Getting stuck in this position wasn't the name of the game. The markets were strong on the news of peace with the price of oil coming down. The real winners where the people who got in on the close yesterday who benefited from this morning's bounce. So many of the daily moves now happening are politically induced. This isn't the brightest of positions to now be stuck in. Now Thurs...
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One Week Options. Neo Again.

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It's Tuesday at noon. Here are the Nio "six-dollar" series of Calls that expire this Friday . Now it's five day chart. Now a more detailed one day chart. Now Wednesday's closing numbers. This is not a good position to be stuck in. Can you see how in two days these calls lost half their value? To be continued. Now Thursday on the close. Can you see how exhausting it is to watch options in this price range. Now this. A jump of sorts on Friday morning. The six series of Calls on Nio closed the day at $.04. Can you see how they jumped on the opning to a high of $.07. It gets even crazier than this. Look at how the Puts got squeezed on the opening down to $.05 to then only rebound back up to a high of $.19. Can you really be buying $.04 options, or $4.00 per contract options on a Friday at the close expecting to make money? That is the question you have to ask yourself.
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Put Options On The High Flying Stock "Sandisk" Are Difficult To Play

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I have ignored this stock all year, not knowing much about it. The stock is Sandisk and it doesn't pay a dividend. Sometimes I think that the stock has gone up to much in price to quickly. Is trying to play it for the downside with one week Put options the way to go? Why try and play Puts on a stock that never seems to go down? Why not just ride the Calls up? The stock is up $52.00 on the day. At noon on a Monday here is what one series of it's "just-in-the-money" Puts look like. Do these premiums seem to be abnormally high? Yes. $59.00 dollars means $5,900.00 dollars per contract. If you are new to option trading stay away from these ones. Other stocks trading in this price range like Costco have options on them trading at much lower prices. Here is an example of what I am talking about. If we look back at a blog I did last week on Caterpillar you will see how much of the time premuim built into the pricing on these "one-week-to-expiring-options" decreas...
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