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Tesla is Down About $20.00 In Pre-Markets On A Friday Morning After Losing About $20.00 On The Previous Day

Here it is. This is a somewhat unusual situation. What are we looking at? We are looking at Tesla's one day trading action yesterday which was a day when the markets had a big decline. We are also looking at the "bid and ask" on Tesla in the premarkets this morning which is a Friday. Yesterday's big decline is causing a scare. Will the stock keep falling? One thing we do know is that the stock is going to go up or down. How do you play it? Can you play it and why would you even want to try? A bid now of $383.60 and an ask of $383.70. These numbbers are premarket pricings far below the previous closing numbers. Really far below. If you look at the above chart you can see the price range that it closed in.Yes you can buy in the premarkets with the click of a button. I should be doing blogs about how it all works but really it's as simple as it sounds. It's unusual the spread it so tight making it in theory a good time to get a good fill on an "at market...
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Young People And Options

Let me spill out some information. Next-Generation Investors Are Different. An organization called "Finra" published this information. In a 2021 survey the Finra Investor Education Foundation found that 36% of respondents aged 18 t0 34 said they have traded options. That compares with 21% of respondents ages 35 to 54 and just 8% of respondents age 55 and older. Then there are crypto investors. According to something called a Pew Research survey based on Feb 2024 data, 42% of men aged 18-29 have invested in, traded, or used cryptocurrency compared with 17% of women in the same age range. Interestly, just 17% of all adults say they have invested in, traded, or used a cryptocurrency, according to the same 2024 survey. When it comes to buying on margin,in 2021, just under of a quarter, or 23%, of investors ages 18 to 34 said they have made purcheses on margin, compared with 12% of respondents aged 34 to 54 and 3% of respondents age 55 and older. Opening accounts is now easier and there's an explosion of new sources of information and social networks that can encourage risky behaviors. Let's not forget the recent frenzy of meme stock trading. Robinhood knows all this and works in this space.
Look at how it's stock has traded in the last one year.
My point is that young people are experimenting with option trading and the trend is only going to continue. Pick twenty or thirty stocks and just watch them for a few months. Write down turning points you see happening and check out how much at that point in time a Call or a Put costs on any series you pick. Then check back later to see if you were correct in making such a call. Option trading, unfortunately is very much a self taught process.

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