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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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Sweet Spots In Option Trading - Deere

A fly on the back of a horse. An option contract that expires at the end of the day on a billion dollar company that few traders dare to play options on. A company for the most part void of news releases with Call and Put premiums which are prohibitively expensive. Which stock am I talking about? John Deere. Here is it's five day chart.
Now here is it's one day chart on Friday which is the last day on the above five day chart..
Can you see how it went up in price in the early morning trading and then sold off? Think about how this would effect the Puts. Yet then again who would have the nerve to be playing them?
In the early morning trading they were down to $98.00 a contract and then a few hours latter hit a high of $420.00. Look at how insignificant both the "open interest" numbers and the "volume of contracts" traded numbers were on the day. Friday morning reversals are something that some option traders learn to cherish. If you can't get your head around this idea, I get it. Option trading is afterall a solo experience. Call me timid. I played one Call option contract on Deere (the $402.50 series of Calls) for a two hour hold on Thursday. It's a good thing that I didn't hang onto to it going into the next day.
I didn't want to be holding onto the contract overnight. *** On this stock I find that the option premiums are crazy expense until part way into Thursday and then into Friday when options on it on that day expire at 3:00 p.m. ****** One final thought which I am hoping might help to further quantify the risk involved in making this type of "last day" option trade. Deere hit a high of $411.69 in early Friday morning trading. That's when the 410 Puts went down to $98.00 a contract. On a stock which is known to swing five dollars in anyone day isn't it conceivable the stock could drop in price over it's next five hours of trading? PART TWO OF THIS STORY. Deere drops $20.00 on the day, Thursday May 16th on trade talks. Look at this five day chart.
Can you shake it all off and buy one day Calls that expire tomorrow?
To be continued. Next Friday May 17th. In the last day Deere got dumped on with fears over trade war talks. Here are it's new charts. First the thirty minutes into the Friday market chart.
Now it's five day chart.
Next how the Call options which expire today are trading. What a gamble.
To be continued.

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