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Last Day Options - Tesla

If your new to option trading you wil not have the courage to play "last-day-until-expiring options". I get that. Perhaps a mid week option trade would be better. Find a chart pattern that looks interesting and buy yourself a three day ride. Or safer yet, buy an option on Friday at the close with five days of trading life left in them. Correctly picking the right directional movement over such a time period would instill a feeling of confidence in what you are doing. If you fail in such an adventure what would I advise you to do? Give up? No. Study harder. Now let me throw this one at you. Here is a recap of a blog I posted yesterday where an option trade doubled in price in just less than ten minutes. In all fairness most newbie option traders would not be purchasing "out-of-the-money"Call options which expire in only a few hours. What I am about to say may sound a tad stupid. If you want to jump into the world option option trading Tesla is one of the top stocks...
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The Trade Of The Year On Caterpillar Calls. It's No Surprise It Happened On A Friday

In a past blog Caterpillar averted a strike and it was noted that the stock jumped to the moon on that news. Caterpillar has a large following and likes good news-made in America stories. Biden avoided his government running out of money late Thursday and on Friday the stock Caterpillar jumped to the moon. It opened higher and kept going up.There is no looking back now at what happened.
My May 29th blog talked about how Caterpillar had slight bounce last Friday morning and the light volume of option trading on it. With the stock going sideways to down all that week playing Call options on it was out of fashion. Things changed on Friday June 2nd. Caterpillar bounced. So here now is a look at how two "out-of-the-money" series of Call options traded on it on Friday.
Look at the open interest numbers going into Friday. Two hundred and ninety five contracts. Few traders were expecting the news to come when it did. This blog could now go in many directions. Last week both Caterpillar and Boeing struggled on the week and option trading volumes dried up. My attitude was not to trade, to wait for better days. I should have known better, the system is a little bit corrupt. Insiders could gain the most from a late Thursday release of good news. A one day pop in the next days options. That is what happened. On Friday the D.J.I. was up over 700 points. The one day options on Caterpillar were star performers. It was the "trade-of-the-year" on Caterpillar Calls. It doesn't look like any of the 100,000 or whatever the number of brokers and analysis there are out were clued into this action. So strange. * Also think about this. Caterpillar has something like 109,100 employees. I don't understand why there isn't more traders in on this action.

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