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"One Day" Expiring Call Options on Tesla And Why It's So Easy To Get Caught Trading It The Wrong Way.

Let's start with a five day chart on Friday morning. Tesla on todays opening is tradng flat. Is that good or bad if your'e looking for a buy in situation. Doesn't a flat opening tell you to stay away? O.K. stay away and come back to it a lunchtime. Now this. Here we are at noon. Nothing much has changed. Well you could have made good money if you bought Puts around 9:45 a.m. and got out around 11:00 a.m.. What do you think is going happen next? Go up, down or not do anything in the next couple of hours. The deadline to get out is at 3:00 p.m.. Do you have the desire to try this? But first, here is how what the DJIA index is doing.. What now really needs to happen is to have the DJIA index kick up to help drag everything up. That's what happened yesterday to Tesla as the indexes gained about 165 points on 36 minutes. Let me quickly show you how yesterday's Calls jumped. That's the kind of movement Tesla is known for. Now let's get back to today's ...
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Ford Puts - sometimes they will surprise!

Back to an old friend. This blog is about why trading stock options on the stock "Ford Motors" can suprise. It's also about trading options I call "penny like options". In this instance I am trading options priced at twelve cents. For first time readers that really means $12.00. Now, a one day and five day chart on Ford. Can you see how volatile the stock is as of late?
Now the five day.
Now a look at it's trading in the morning today up until 11:30 a.m..
Now here is my trading experience on the day.
20 contracts in at 10:05 a.m. at $12.00 each and out at 10:38 a.m. for $18.00 each. That's six dollars profit a contract. It all happened very quickly. Are you able to look at the chart above and see how the chart dipped during that period of time? If you don't play options and want to don't start by making trades like this. Well then again some traders only only make trades like this. It's not uncommon to see a $300.00 trade quicky go to $3,000. It's Ford. Times are changing and Ford feels it most. This leads to yet another point. Being a trader is not everyones cup of tea. Ford options are just something that most people would not want to be thinking about. Pity. ***** Yet another example. This time on a Thursday with one hour and eight minutes to go in the trading session. Take a minute and try to figure out what is happening.
Ford is up .12 cents on the day. Think of what would happen if it ever gave up this gain by the end of the day or on tomorrow's opening. Welcome to trading Ford options. *** Here they are seven minutes into the Friday morning trading session. Yes there was a profit to be made.

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