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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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First Solar

Remember in previous blogs I made mention of the EV industry experiencing a bit of a stumble over range anxiety issues. Then Tesla launched their new truck last week and reported they had a million orders for it. Suddenly the range anxiety issue seemed to disappear. Well the same thing was happening to the solar power industry. It was being reported for a few weeks or so that rising interest rates was keeping new customers from buying solar panels and companies from building out solar powered projects. First Solar sold off yesterday. Here is it's one month chart and a 2:32 p.m. look at the 155.00 and 152.50 Puts. The volume of trading on them was next to nothing.
Now the 155 and 152.50 Puts in the afternoon.

 Now here is the thing. When a stock starts to fall who knows when it will stop falling.  Other stocks like Netflix, Deere and Snowflake also trade like this. Big moves in short periods of time. Now look this chart. It's two days later.
Look where the stock is at now. It's below $145.00.  The 155 Puts are up 400%. Now for a one day chart to see where it closed today, December 7th
Would now be a good time to look for a reversal? Here is it's year-to-date chart.
This is a chart which could go both ways. It's 82 percent owned by institutions and can move on no apparent news, or news that retail players can't sniff out. Back in April it had a nice move.. All I am really trying to say is that option traders look for the breakouts on stocks like this. The light volume of option trading part of this story doesn't bother me. It's actually something I  appreciate. I don't like trading options on stocks like Apple where everyone and his brother is following the same action with a sense of confidence.. First Solar is known to surprise in both directions. * A Friday morning report.
A pop. Now here is the proof in the pudding. Look at the number of contracts traded in this series of Call options.  To be blunt, the someone wants to be in on this action. Who else trades options in blocks of 100?

Now look at it's chart a few weeks later.
* Let's now jump ahead to July 27th, 2024.
The one year out Calls is where the action turned out to be.

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