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Tesla On A Wednesday.

Let's start with this chart. Tesla is stuttering after the opening. Here are how one series of Calls are trading. What you need to know is that these are Call options which expire today, on a Wednesday which are not the usual Friday expiring options I commonly follow. Who would be bold enough to be playing "last-day-to-expiring" options? Next, Tesla at 1:42 p.m. ... Now a different look at the same action. So at 11:08 a.m. they jumped to $4.50 and at 1.04 p.m. they jumped up to $4.33. Now this at 3:00 p.m.. . These Call options have run out of time. 3:00 p.m. is deadline for when retail traders have to be out of their positions. Tesla can sometimes jump $25.00 in one day. I get it as to why there is a fascination for one day option trading on Tesla, especially when the DJIA trades so erratically on a "hour-to-hour" basis. With this kind of trading you have to learn to take your profits whenever you see them. Unless you're playing with recent profits ...
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LiveWire

My last blog was about Harley Davidson and what I didn't bring into the conservation was their spin off business which is building electric motorcycles. To be honest these bikes are not getting rave reviews. Two complaints are their crippling range and the possible issue of them being more dangerous to drive because they are so quiet. There is also competion from abroad. Last quarter they built only 63 of them and that experience is part of the company expecting to incur a loss of over $115 million this year. If you do the math each bike built cost them over $200,00.00. A $115 million dollar loss vs a profit of $1.3 billion for Harley Davidison. That loss makes a small dent in the overall big picture and in the process of getting going they used other people's money. Nursing this project to life from a business point of view has merit. Covid didn't help anything. LiveWire has to go slow until the product itself evolves to a level they feel proud to put their name on. Investors know this companies pedigree. See it's chart and read this.
Now go back to the previous blog on Harley Davidson. Put this puzzle together anyway you want. Forcasting of 750 units on the low end is still a three fold increase in production levels from where they are at now. Could they turn to be profitable in the next 1,000 days? Maybe. Yes there are options on LiveWire. Here are the Oct20th/2024 Calls with a striking price of 7.5 and 10 dollars. That's as far out as you can go and no one is trying to play them. The bids and asks are to far apart.
Keep in mind the company will continue to lose money all year. What a muddle. There are easlier games to play.

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