Posts

Featured

McDonald's. It's Difficult To Fight Strong Stocks.

Here is McDonalds five day chart at the close on Wednesday. Now here is it's three month chart. Now consider this. In two days the stock is up about twelve dollars. I often talk about Wednesdays being the one day in the week the markets can do reverals. Today the DJIA was up over four hundred points and McDonalds was down 60 cents. It dipped on the opening and came back a bit and then selling pressure came into the stock again on the closing. I personally hate McDonald's food. The internet has tens of Youtube videos saying their fries are poisonous. Yet I get it. But think about this. Whenever a new residential subdivision goes in anywhere in North America there is room for another one of their restaurants to go in. They just pop up and everyone knows what they are. Here now is a snippet I posted in a past McDonald's blog. After a lackluster trading session today McDonald's could drop in the next two days or at least on a Thursday afternoon sell off. Yet nothing m...
Post a Comment
Read more

A Random Walk In The Park On A Monday Morning. A Caution. Monday Mornings Are Often Not An Option Players Best Friend

Image
Let's start with this. It's now 10:26 a.m. A bet on Caterpillar rebounding by the end of the week. There are no takers. Why have to watch the screen for the next four days in agony waiting for a rebound which if happens is just a "break even trade"? But Wait. I made a mistake. The market is actually now down 668 points. What else can we look at? Interactive Brokers. These kind of stocks always do poorly on days with the threat of margin calls. Yet there is something interesting about the printout I am about to show. It is that these options are "one-month-out" Calls. These longer term options trade differently than short term options. (these options trade in one month intervals). If the stock we are following stops it's freefall the value of the options will nudge up ten, fifteen or twenty percent. A seven dollar option Call might creep back up to $8.00 or $9.00 at which time it could be sold. In contrast with a five day option a slight reversal in ...
Post a Comment
Read more

Walmart Is One Of The Few Short term Option Trades Now Doable In These Markets. How and Why. Plus Costco

Image
Doable means "within one's power". If you don't understand how to play Call and Put options yet, let me show you this. What is Walmart doing? It's selling food and soon may build new relationships with new suppliers. Change often comes at a price. Going forward will Walmart's profit margins get squeezed? That's the question. Look at Walmart's chart over the last year. Now let's look at Costco. What does that show us that is relavent to option trading? Well nothing really. It just tells us that these companies are not going to go away. Now if we look at their trading charts over the last five days will that information be more relevent? Maybe. I now offer you this material. A look at their five day charts. Now Costco. Does having access to these charts make you a better trader? Not really but stay with me. Now here is a tricky thought to digest. Everything you know about Walmart doesn't really have much revelancy when it comes to playing the...
Post a Comment
Read more