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$5.00 Stocks With One Week Options On Them. Nio

It's all about timing. Is this a good buying opportunity? Chinese built electric vehicles, the news coming out in this space can be exhausting. Monthly auto production numbers are what traders look at. Nio's stock is not being rewarded for this years performance. If a car company on this side of the ocean had growth like this traders would be all over it. It's all a guessing game. Let me now tell you why I like this situation. .... These Calls are now priced at $.08 and the high this morning was $.13. An uptick back up to let's say $5.06 would bring these Calls back up to $.14. What a stupid exercis eto be chasing you might be thinking. I kind of agree. Yet the point remains that a small updraft fow whatever reason would make this a profitable trade. Can we find guidance in it's five day chart? What I do know is that I wouldn't want to be playing this series of options if it had only one or two days to go. As hours tick by you might be stuck in this waitin...
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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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