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Tesla And Wondering About One Day Options. Is This A Crazy Topic? You Decide But Hear Me Out First.

Tommorrow is Friday and I don't have time to babysit these options all day. You might find yourself in the same situation? Look at it's one day chart today. Now here is how one of it's Call option series were trading in the afternoon two days ago. Here is how this same series of Calls closed today, a Thursday. One of the things this tells us is that these options dropped in price by one half since 11:00 a.m. this morning. At one point in time they actually dropped down more than that before they started to crawl back up again. So it's a flip a coin situation right? Well not really. My best experieces trading Tesla options are in playing it's last day "at-the-money" or slightly "out-of-the-money" Call options on Friday starting around 1:30 p.m. and getting out around 3:00 p.m. It helps if the stock keeps rising all day like it sometimes does. Trying to outguess this stock on a Thursday evening is a waste of time. Waiting for the stock to go up ...
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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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