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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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Tesla Puts With One Day To Go - This Time After A Trading Session Where Tesla Was Up More Than $15.00 On The Day

So, here they are nine seconds into the Friday morning trading session. If you wait two minutes to get into the action the dynamics of the situation may look considerably different. At this particluar junction if you have the guts to get in it's best to do it "at market". The bid and ask are tight.
Now 1.5 hours later.
As a trader wouldn't it seem like a good time to get out? It is afterall a Friday and there is always be more opportunities next week? Now look at it's five day chart. Are you able to see the massive rally of about $15.00 on Thursday on the news of interest rate cuts? Call option traders trading Tesla would had a grin on their faces.
Do you think it will drop more? To better answer that question here is one indicator as to what the markets are doing.
Now let's skip ahead and see the final readings.
So a morning exiting was the correct call to make. At 11:00 a.m. these Puts were trading for $2.80 and another twenty minutes later they went as high as $4.41. Now a look at it's closing one day chart.
By noon the stock was back up to $240.00 making the options impossible to trade successfully for the rest of the afternoon. ** From past experience what I have learned is that you can only successfully trade Friday afternoon Calls on Tesla on strong days when the stock is up six or eight or ten dollars by noon. Those days sometimes happened quite frequently a few years back. Some trader's use Tesla as their "go-to" option trading vehicle because of it's known volatility. I will try and do a few more "Friday Tesla Morning Trading Blogs" going forward.

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