Posts

Showing posts from May, 2021

Featured

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...
Post a Comment
Read more

"Ford" and an Extreme Opportunity Missed

Image
If you were out cruising in your Mustang convertable on Friday you probably missed this action. It's a shame because had you purchased $1,000 of a certain "Ford" series of "Call" options on the opening and sold out just after lunch you would have made enough money to turn your ride into something a lot nicer, something like $47,000 nicer. Honestly, this did happen and it wasn't all that complicated trade. This blog from this point on is going to write itself. Try and follow this action. Look at the high and low on these options. .01 and .47 . One thousand dollars actually turned into $47,000 if you caught it right. I have talked about how options on stocks in the ten and fifteen dollar range can often be darlings to play and "Ford" and "U.S." Steel are two of these darlings with options series that are the most splendid to play because their liquidity is excellent, bid and ask prices tight and price movements swings on only five and te...
Post a Comment
Read more