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Walmart Again

On Monday I did a blog on buying this week's Call options on Walmart. Today is now Thursday and there was a big crash in the markets yesterday. For example, Tesla had an insane selloff. Here is what happened to it. Today it is slightly rebounding as are so many other stocks. Thursdays however as oftened mentioned are not a good time to be purchasing one day options on stocks that expire the next day. So how is any of this revelant to Walmart's trading today? Well, there was a whole bunch other stocks that got knocked yesterday that might now rebound back up again together. Look at the chart below of Walmart and see how it was off a couple of dollars yesterday. Could you buy in now and get out later in the day? Fantasy thinking, one might say. Could it sneak up even one dollar? Now this. The stock mid morning is now merely trading sideways. Now look at this, the 93 series of Calls. (On Monday we were looking at the 94 series of Calls). At 10:22 a.m. the stock is up six cents...
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Buying A Hot Potato - A One Day Look At Tesla Friday Options

First. Get into an option position just before the close of trading on a Thursday afternoon. This time the stock under consideration is Tesla. Will there be anything to learn from reading this? Probably not because the outcome of a situation like this will be different everytime. Find my last blog about how the Puts on Tesla traded last Friday. It was one of the most memorable trading experiences of the year. Let's quickly set the stage for today's action. First a look at one series of Telsa's Puts which expire tomorrow which will be Sept. 13th. Once again, this is a look at Thursday's full day of trading action in the 230 series of Puts. .
Now look at the Calls.
Now the five day chart.
Look at how the two open interest numbers are only like one-tenth of the daily number of options traded in each series. Traders don't want to be holding these positions overnight. Notice also how the open interest in the Puts is greater than in the Calls. What's that all about? One of the reasons might be that Put holders were amply rewarded on yesterdays opening. They now have profits to play with. See the above chart to verify that. Now lets check out out the action a few minutes after Fridays opening bell. Now a look at a two charts of the first five minutes of trading. This is interesting. First, the first five minutes of trading chart.
Now the five day chart.
Look at how quickly all of this action happened. Six minutes to be precise.
Puts that closed at $250.00 went as high as $453.00 on a suprise opening dip. What's going to happen next? There are endless variations of what might happen. If you look at the one day chart below you will also see that there was a second chance to buy back into the Calls around 10:30 a.m. and play them until 11:30 a.m. which becomes a game of "get-in-and-get-out". This is the type of action many daytraders are attracted to. The liquidity is excellent. Here are the end of the day results.
The stock really ended up doing nothing all day. Here is how the Calls and Puts closed on the day.
Our initial look at what the Calls were trading at were trading at (the 9:36 a.m. time period) was very close to the top of the range for that day. It was the same story for the Puts.
Once the glitter of the first five minutes of trading was over the rest of the days action in both the Calls and Puts was contained. Every Friday is different for Tesla options.

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