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Tesla Option Trading At A New Level. This Is An Important Read.

Tesla now has option series that expire on a Monday, Wednesday and Friday. A handfull of other stocks shown below have also switched to this same format. Before that they expired only once a week on Friday with traders often wondering if they should jump onboard Thursday seconds before the closing bell looking for a definitive move on the opening. With this new 'three-times-a-week" format traders will be watching the action on Fridays, prior to the markets closing, looking for Monday morning moves. This switchover started back on January 28th of this year. The stocks listed below were also part of this change. Now watch the wild action on one series of Tesla Calls today. First it's five day chart. Now it's early Monday morning chart. Look at how it has given up it's opening gain. Option traders who bought Call options just before the close last Friday had a morning opportunity to get out at a decent profit. Now this, a look at one series of its Call options tha...
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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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