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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
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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 year.

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