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Tesla - Intraday Trading. It's Not Usually Like This.

Last Friday's blog covered the same topic. Here we are on Tuesday after Monday being a holiday. Tesla down $12.58. We are looking at Call options five dollars "out-of-te-money" with 3.5 days of trading life in them. ... Now this. A bit of a pop after lunch. Now here is how the stock traded on the day. Can you see how the exit point at 2:10 p.m. was a tad premature. Yet look at how smooth a ride it was. What did these Call options ended up trading for at the end of the day? Well it doesn't really matter. This was a roller coaster ride. My last blog about playing Tesla showed the vary same thing happening. Yes you can play these options if you time it right. Timing is everything.
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Harley-Davidson

First, I am not a big fan of playing options on stocks in the thirty and forty dollar range. It's not like speculating in Boeing or Caterpillar Calls and Puts with these stocks swinging up or down two or three dollars nearly everyday. Harley Davidson is a thirty five dollar stock. Look at how it is trading so poorly on the good earnings news back at the end of April.
Now here is some of this news.
All the good news was wiped out by the forecasting of a bit of a slowdown in the second half of this year. Investors who bought in early this year when the stock was trading over fifteen dollars higher who correctly anticipcated this surge of earnings must now feel so frustrated. Where are their rewards? Now look below and see where the January 37 Calls are trading at. If the stock gets above forty you would be in luck. That would buy you their next two earnings reports. By then management might see their business in a more favourable light. Yet the chart looks ugly and there doesn't seem to be a support level.* With most option positions "time value" works against you. When you purchase eight months of time and your reasonings for buying in turn out to be correct the time value can become your friend. It is however still a scary position to be considering.

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