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Trump Media Technology Options With Three Days To Go.

On Tuesday just after 3:00 p.m the Trump Media Technology Options had stop traded again. What is the next 24 hours going to bring? Who knows. So many option traders follow this stock and most are afraid to buy either Call or Put Options on it because their premiums are so expensive. If Trumph wins the stock should soar and if he loses the stock will tank. The option premiums are priced expensively in both directions. Here now is how both the Calls and Puts traded on the opening today. First the Calls six minutes into the opening. Now the Puts. Now a look at how these options played the day. With a "stop trading" situation the option session ended a little bit early as evidenced in these following readings. Notice also how low the open interest number is in these Puts. Option traders for the most part opted to stay away from this situation. Now this. Trump wins. Here is how the 38 series of Calls traded just after the opening at 10:11 a.m.. The stock is up however the
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Cat Puts on Earning Reports

Third quarter profits were released.
Now a look at a statement made after the release of their second quarter earning report three months ago.
So if you were anticipating a price swing on the release of their earning's report could this be a profitable adventure? Suprisingly, yes and no. It depends on how you reacts to the stocks quick and precipitous decline. It also takes a bit of luck. Look at how the "near-to-the-money" Call options and Put options traded just after the release of this news. First the Calls. They lost 82% of the value at this particular time. The open interest number is just over 800 which is actually a small number when you consider Tesla options often trade 100,000 option contracts in multiple series everyday.
Notice how these Calls, the 390 series actually traded down to $.14 or only fourteen dollars a contract before rebounding back up again to $1.42 in a short period of time. That was a nice rebound. Yet then again who would have the confidence in something this far "out-of-the money rebound to where it started at on the opening. If a rebound didn't happen this particular series of Calls would surely end up worthless. Now look at how the 390 series of Puts traded. These are the ones many traders would be looking at on the day prior to the release of this earnings report. That shows you how few traders understand how options on stocks in the $300.00 and $400.00 dollar range work on the release of quarterly earning reports.Notice the open number of only 178 contracts and the volume of trading of only 36 contracts in this series.That's nuts.
At some point in time in the first 36 minutes of trading they dropped down in price to just over $22.00 and the stock quickly snapped back up in price. It took that long for the markets to adapt to the downside and then come to the realization that things were not really not all that bad. No talk about the company losing money, no talk about layoffs. So anyone holding Puts going into the opening markets this morning would of had a chance to more than double their money. Yet your timing would have to be near perfect. That's the hard part of doing this. You have to wonder why so few traders were willing to take these kinds of risk. Now look at this chart.
Look at the almost twenty dollar rebound.
A rebound of $1.34 to $9.65. Look at how few contracts traded. It baffles me that more option traders are not glued to this kind of action. Check back in on Caterpillars next quarterly profit report. ** The magnitude of today's rebound within a matter of an hour rarely happens. The apex point of when the market switches from going down to up is never an exact science to pinpoint. Trader's close to trying to nail it should have confidence in the fills they will get from market orders. With swings of this magnitude if you catch the right direction you will be amply rewarded.

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