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Why Two Day Options Are Not Where It's At

If you just jumping into this blogging site for the first time I want to say that this blog will be one of the most unfriendly bogs to read. You are catching a snippet of a series of blogs about short term option trading. I have often said that options with two days to go are my least favorite options of the week to play. They are "flip-of-the-coin" situations with the passing of time values eating up a substantial part of the option's premium. Monday morning one week options, Tuesday afternoon options which expire on Friday and Wednesdays options which also expire on Friday and which often benefit from weekly directional shifts are free of these time value worries. In other words, don't be holding Wednesday options going into Thursday. One more don't. Don't open up positions on Call options which tend to be a bit more expensive than Put options on Thursday options which expire the next day. Yet having said that sometimes in the last four or five seconds of tr...

Tesla and Deere Going into a Thursday Morning.

Are you able to remember my blog last Friday talking about Tesla dropping $19.00 in one day and it's Puts jumping up a zillion dolllars? Here are the closing numbers on Tesla and Deere today, Wednesday September 11th. They are difficult to read but Tesla closed at $228.13 and Deere at $388.59
Now look at the sightly "out-of-the-money" Calls on both of these two stocks which expire at the end of the week.
Now the Deere Calls.
.................. Now look at their one day charts.
Remember I have repeatedly said that Wednesdays ( in the context of trading one week options) are the best days of the week for turnarounds situations. Look at the one day charts and look at the gains on the day that both of these option series had. They both took off on the upside after a morning dip. I will continue to track the movement of these two series of Calls over the next two days but the context of this blog is a blog in itself. Wednesday once again can be turn around days. Happy trading. These opportunities are available to everyone. I can't make this stuff up. A Thursday evening update. Deere gave back some of it's previous days gains.
Tesla did nothing.

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