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McDonalds Again And A Follow Up To Yesterday's Blog..

Some option traders on Friday mornings just want to be in and out in the first hour or so of trading on short term options they feel comfortable trading. In the second half of the day most of the action calms down. Take your winnings and run. McDonalds sold off a little bit yesterday afternoon and firmed up a bit towards the closing. Could this "mostly downtrend" continue? Here is a partial look at the opening bell's action, today a Friday however let us first look at how the stock traded yesterday. Now a look at it's trading pattern at 9:32.22 a.m. Now this, McDonald's jumps up $4.98 and the 317.50 Puts we followed yesterday which are now "out-of-the-money" acted accordingly. During the fist 2.22 minutes of trading they traded down to 34 dollars a contract. Now this. In the first three minutes of trading the stock jumped a bit and started to come off a touch. These Call options where not attacting all that much attention. The bid and ask jumped up ...

Boeing Calls on a Monday Morning And The DJIA Down 500 Points

Let's start with a few premarket opening numbers.
Not a happy opening. How do you tackle the week in option trading when it starts like this? Do you jump into Calls hoping for a rebound or do you stay away? Let's see the volume of trading on some of our favourite picks in the first five minutes or so of market trading. Note fifteen minutes into the trading day the DJIA is down about 500 points.
What is there to learn from this? Well don't expect a noon reversal. There might be buying opprtunities after three in the afternoon so sit tight and do nothing. Here are a few closing prices. Will the markets rebound and is this a welcoming buying opportunity for option players? No one knows and snap rebounds often accompany these major sell offs. Any kind of bounce on the opening tomorrow may be short lived. Here are the closing numbers.
Tomorrow we will look at "the open interest numbers" to try and see how positions increased as or if, computereized trading kicked in. Boeing seemed to sell off the least today making it look more interesting than others. Boeing has many daily news reports.

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