TSLA: this made my head spin
Another big run today and a new ATH breaking the 2K barrier -- i'm sure many folks who bought when the split was announced are happy -- great job!
but here's what made my head spin today as i was checking TSLA's option chain
at the time of this writing, the at-the-money weekly call (082120C2000), that's the call option contract for the 2,000 strike price that expires tomorrow -- has the following stats (I rounded some numbers for simplicity:
traded volume: 90,000
mid-price: $39 (that's $3,900 per contract !!)
theta: -15.2 (so tomorrow the option contract loses $1,520 of its value due to time decay !!)
Open Interest: 15K (today's volume is almost 6x the amount of all open contracts)
simple calculation, that's 90K x 3.9K = 350M -- in just one option contract of the TSLA option chain - traded in one day - for a contract that expires tomorrow - hoping to make a quick short-term gain. day trading at its best :) -- and looking at this makes me think of the billions of dollars put each day into these types of "lotto" moves and what/who is behind them.
Just a thought :)
but here's what made my head spin today as i was checking TSLA's option chain
at the time of this writing, the at-the-money weekly call (082120C2000), that's the call option contract for the 2,000 strike price that expires tomorrow -- has the following stats (I rounded some numbers for simplicity:
traded volume: 90,000
mid-price: $39 (that's $3,900 per contract !!)
theta: -15.2 (so tomorrow the option contract loses $1,520 of its value due to time decay !!)
Open Interest: 15K (today's volume is almost 6x the amount of all open contracts)
simple calculation, that's 90K x 3.9K = 350M -- in just one option contract of the TSLA option chain - traded in one day - for a contract that expires tomorrow - hoping to make a quick short-term gain. day trading at its best :) -- and looking at this makes me think of the billions of dollars put each day into these types of "lotto" moves and what/who is behind them.
Just a thought :)
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