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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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Boeing and Caterpillar on Jan 6th With the DJI up 700 Points.

First some background information. The three and one year charts on Boeing and Caterpillar.
Now the Caterpillar three and one year chart.
Both stocks have had amazing upward moves in the last ninety days. That means playing Calls correct? Look at Friday's Call option action. First Boeing.
The 205 Calls surged ten fold on the day. Now Caterpillar.
The 245 Calls also surged upwards.
Another ten fold increase. With the Caterpillar Calls above one could have purchased ten contracts at $300.00 and sold out at $4,900.00. Let's now look at the one day chart to see how this would be possible.
Buying into this position around 9:45 a.m. in hindsight was the time to get in.
The following few points might better put all of this into perspective. 1) Commenting on past events of what has just happened is not that difficult to do. It's like going to a rocket launch and describing what just happened. The compelling reason I write about situations like this is because they do happen. Boeing and Caterpillar, both strong stocks in recent times do sometimes charge up on Fridays and if your willing to throw some money into Call options on the very day they expire you sometimes can be handsomely rewarded. 2) What are the odds Of Boeing or Caterpillar going up eight dollars in one day? I would guess about ten times a year. What are the odds of a slight morning decline before a rebound back up on one of these days? I would say eight out ten times. What we witnessed wasn't that abnormal. It's a mix of playing the strenght of the markets and a stock in a strong short term uptrend. 3) Friday morning option trading on options that expire that day is a game very few play for obvious reasons but it is also a game some option players specialize in. 4) One techique option players sometimes use is to buy into option positions just before the close of the markets on Thursday and sell into the strenght of premarkets openings. It's a bet on the opening higher. Are tenfold option price increases exclusive to stocks like Boeing and Caterpillar? Not really. Look at Tesla on Friday. The same thing happened.
Take note. Over 65,000 option contracts traded in the series shown in one day. Profits potentially made could help pay for new Telsa cars. Trading in one day options isn't really a secret.
Location: 4QMPH9W3+VX

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