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"Tony The Tiger" - A Food Stock

The mood of Wall Street is now changing as the reality of tariffs is starting to kick in. Two weeks ago not so much so. Kelloggs had "so-so" earnings come out a few weeks ago and the stock exploded upwards. Note the very last line above mentions the effects of tariffs are not taken into consideration. So many stocks with "so-so" earning reports have jumped in price based on the "lets make America great again" slogan. Deere stock is shooting to the moon as I keep writing about in spite of declining sales in the last quarter. The sentiment seems to be that they are immune to tariffs. On paper they might be. Read this. Americans are struggling to buy gas, eggs and insurance. Total housing starts in the U.S.in 2024 were down 3.9%. Walmart, the recent darling stock in the last four weeks for Call option players woke up this morning with an earnings report which was healthy but with came with some caveats. Here is what happened. Perhaps the U.S. is starting ...
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Tuesday May 11th. A 473 Point Drop In The D.J.l. In One Day With "Mcdonald's" Options Up and Down

I went into Tuesday with a "McDonalds" "Put" which I sold at 10:04 a.m. I had bought it just before close on the previous day because I liked the chart. First here is it's five day chart followed by a one day chart.
The market tanked on the opening and I didn't wait long to get out At 10:00 a.m. it seemed to be on a rebound. See the chart. I got out once again at 10:04 a.m. Here is the ticket. Like they say, shoot first and ask questions later. The printout is difficult to read but it says out at $5.30 This traded netted me $150.00. I was ok with that.
Everything was down but the day was early. Were the markets oversold? I turned around and played the upside. Sometimes that can be the worst strategy in the world and I did it with two trades.
I liked what I was doing because I was trying to play a morning bounce after a sharp morning decline and my fills on these two trades were at 9:52 a.m and 9:55 a.m..
I got out ten or fifteen minutes later at 10:09 a.m., 4 @ 1.95. I only made a few dollars but I didn't want to hang onto them and see them role over. I was free from that position. Or was I?. At 11:47 a.m. I got the itch again to be back in, this time paying $147.00 each for two contracts, on the same series of "Calls" I just had just got out of at 1.95. At the end the day they closed out a price a touch lower. I can live with that.
Later on in the day when the market started to stop dropping I bought yet another "Mcdonald" 232.50 "Call" at 3:15 p.m., this time with a next's week striking price. I will have eight trading days to sit on it. One of the reasons I like "Mcdonald's" at this point in time is that more people are getting out which should be good for sales and "McDonald's" is not a stock prone to unusual news reports. To be buting in "Calls" on a day the market is crashing hoping for a next day rebound really only make sense after a couple of days of downward markets. let's see what happens.

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