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Towards Understanding Tesla Calls.

First, forget everything you know about Tesla's current state of operational history. Forget their news about their new factory in Germany, their new models and how many kids fifty four year old fellow named Elon Musk has. Focus on the moment. In this case it's a Thursday afternooon and we are looking at options Tesla it that expire the very next day. The interesting thing in this situation is that we are catching Tesla trading flat on the day. THAT IS UNCOMMON. It has maintained for the last 2.5 hours a slight predisposition to the upside. Now this as we approach 1:00 p.m.. $4.70 for the Calls shown below. They are just slightly "in-the-money". That seems somewhat pricey. The Puts also a tad so. Yet wait, the stock can go up or down ten or fifteen dollars in any day. It often does. Now these two printouts twenty-two minutes later. $465.00 is now $655.00! Let's now focus at this chart at...
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Ford - An Earning Report

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Ford is going electric, that's the buzz. We all know the story. Earnings just came out on the stock and the Call options jumped on the opening. If you were playing options you had to get out just after the opening. With option plays on earning reports that's usually the way to best way play them. First, I will show the prior day's action. There was a gap down on the opening and 94 million shares traded. That's a large number. People were cashing out after recent good times. Now here is a chart of Ford the next day and here is how two option series traded. Buy in at the close and sell out just after the opening. Look at how high each series traded up to just after the opening. The earning numbers were not all that great but it's the buzz about going electric. Ford is one of the better stocks out there to play earning report releases. ** Scroll up to the upper left and read my most recent blog on MacDonald's earning report.
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McDonald's And An Earnings Report

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I was sitting in the drive through line yesterday at McDonalds redeeming a free coffee sticker won from being there a few days prior. It was a long line up for mid-afternoon. I am not a fast food junkie. I found myself thinking of how the Domino Pizza stock was on a terror for much of last year but not so much now. When we were all locked in last year everyone was ordering their pizza. I was also wondered if they would now accept my little free coffee sticker as it was only thumbnail size. Then when I pulled up to the drive thru window I hit a patch of bees. Apparently for whatever reason they were enjoying being at that window. They gave me my free coffee. Boy it was busy there. I note in this option series that there were only 292 open contracts. That small number suprises me. Why didn't more option players see this coming?
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