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A Classic $Tesla Friday Option Day Story

So Tesla moves up in the first few minutes of trading on a Friday and quickly decides to go south. The DJIA closed down on the day 685 points. Here is how one series of Puts, the 425 series of traded on the day. A low of $4.11, the price the 425 Puts just after the opening and a closing price of $33.90. More surprising were the "out-of-the-money 410 Puts. A low of $.33 and a high of $21.28. The most extreme gain was with the 392.50 Puts which has a low of $.03 or three dollars a contract and a high of $4.12 or four hundred and twelve dollares. Do the math of that one. How many times has this website talked trading "one-day-until-expiring-options" on Tesla options. The answer is many times. There was news this week about Musk raising 75 billion dollars for "Space X" and in doing so is selling out only 4-5% of this new company. Musk is the richest man in the world. Powerful people can make powerful moves. So what's my point? My point is that the option mark...
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HESAI - A New Company To Learn About ( With a July 2025 Update)

Let's look at this stock as a trading vehicle. Hesai is a company that helps to make driving safer.
I am not saying that I endorse this company or know a heck of a lot about it. All I am saying is that I am intrigued that it has options trading on it. Option traders are just discovering it. Just look at the light volumes of trading on it. What does that mean? Well found below are four readouts of how it's "five dollar series" of Calls are trading which will catch you by suprise. What I want to show you is how light the trading volumes are. It's a small company. Small but big enough to get itself listed on a reputable exchange and big enough to introduce the concept of having Calls and Put Options trade on it. All that takes planning. Here are some of it's current realities. It's Chief officer is stepping down and the board is changing. That sets off warning flags. So does this news .
Here is it's year to date chart.
Eight dollars to four dollars and back up the five dollar range. Who wants to jump on the roller coaster and go for a ride? Here are a look at the five series of Call options now available on it. Now, this might shock you. HSAI has these five series of Call options on it that expire tommorow and only one call option on this series traded on it today. That means that these short term options are somewhat illiquid. If however you look at the option series trading one month out (June 21ST) you will see that's where the trading action is.
Lets now look at the "five series" of Call options. Once again, it's the one month out Calls which are interesting. Day traders have discovered these ones. Given they are more actively traded their "bid-and-asks" are tighter together. That's one of the problems of trading in these and other companies offbeat options. Little volume means the market makers keep the "bid and ask" far apart. Contrast this to a Tesla trade I made yesterday. In and out relatively quickly with no real issues and tight no nonsence fills.
As for the "longer term", "further out" Call options there is no interest in them at this point in time. What about the Puts? Are insiders shorting them using options? Not really. One concern I have is that there are so many variables in play. For example, what percent of the float are insiders holding and do they have lock up provisions restricting when these individual could offload their holdings?. It's the unknown factors like this that make it all so much of a gamble. One final thought. Forget the stock for a moment and switch your thinkings to the concept of playing options on five dollar stocks. Look at it's five day chart. It's swings. That's what help to make five dollar options playable.
Part Two. Now a look at the June 21st five series of Calls again on Monday May 20th.
It only takes a small move to move the needle on these ones. The sloppy "bid" and "asking" prices are one of issues of trying to play these options. Now an earnings report release.
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Now that you know about this company you can see it's best to stay away just before earning reports come out. Options on five dollar stocks can suprise, both ways. ** a Dec.27th update.
Now a look at it on July 16th, over one year later.

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