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Tesla And The Play Of The Week - An Easy Read.

Here is Telsa's five day chart. Can you see how it spiked to the upside on Friday morning before it tanked? Can you see how as the day progressed it dipped down to the support level of the $210.00 range? Here is its one day chart. Now this. Lucky in all this action are all those individuals who purchased one day Puts on Telsa in the first few minutes of trading. Look at how these Puts reacted. The lows of the day happened in the first few minutes of trading. Look at the pecentage gains. In the last example a $1.00 option went to $190.00 in one day. Catching one trade like this could make up for twenty bad trades. What's all this talk of Ai trading? Moves like this could blow up the exchanges if thousand of trading platforms could recognize this could happen. This was one of the best option trading opportunities of the decade.
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Playing a Bounce After a Five Hundred and Forty Three Point Selloff

Yesterday we looked at the drug stock Moderna as the stock dropped eighteen dollars and twelve cents in one day on no real news and we were following two Call option series, one being "near-the-money" and one being "out-of-money". Today the market dropped another big chunk.
Stay away correct? Well kind of. If a stock drops eighteen dollars on one day and if most stocks had large losses what might you consider at do at 3:59:52 p.m. on the day of this fall? You might consider buying "in-the-money" Calls waiting for an uptick on the opening. We talked about the 185 Calls and the 200 series of Calls. The stock closed if you remember at $186.40. Why Moderna and not look at Calls on stocks which dropped by a lessor stock amount? Well eighteen dollars is enough of a drop to attract bargain hunters. Here is what happened on the opening today and here is how the 185 Calls looked in the early morning trading. The stocked bounced to over 190.00 in the first few minutes of trading after closing at $186.00 and look at how high the Calls traded up too.
They closed at $10.00 opened at $11.00 and went as high as $13.10. That was a trade. If the market had of rebounded it would have popped up more. Look at how the stock went on the trade on the remainer of the day.
Will the 175 Calls get a slight bounce on the opening tomorrow opening? A dead cat bounce? The answer is probably no as there is not much to get excited about on the upside at this point in time. There would have to be some good news for the industry. Something to cause some confidence to start to buy in.

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