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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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A Friday Rally

It happened. Telsa jumped on a Friday which is something remenicent of what it would do back in 2020. Here is an extreme example of how an "out-of-the-money" Call option jumped from obscurity to being worth lots of money at one point during the trading session on Friday..
There was a little bit of chatter about how Telsa raised some of their prices modestly this week and then the D.J.I. jumped over 500 points on Friday. So here now is where this blog gets a touch tangential. On the close on Thursday this Call option was eight dollars and eighty cents "out-of-the-money" and closed at $.10 or ten dollars a contract. Who would be stupid enough to be spending money on this type of a contract which would expire the next day with the probabities of a payoff being so negligibly small? Or are they? Sometimes when I see people driving new shiny Mustang convertables I wonder if they got them by purchasing Ford Calls on a Thursday with one day to go for $2,000 and selling them for $30,000 the next day after the stock jumped. With a Friday pop it happens more often than you might think. So Telsa jumped $8.86 on the day. Look once again at it's five day chart. Can you see how on Wednesday and Thursday it was trading in the $165.00 range? Given where it once was, wouldn't there be a good chance of a quick rebound of three or four or five dollar on Friday morning? If it did, then the ten dollar Call options would at least double or even triple in price. In this case these Calls dropped from ten dollars per contract down to one dollar a contract just after the opening before rebounding back up to a high of 83 dollars. On a different note, here now is how the 165 Telsa Calls did on the day and the Ford Calls.
Fridays with 500 point rallies are days to be savoured. * Shopify Calls were the lucky ones this week.

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