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Does It Look To You That McDonalds Is Gaining Legs Again?

Here is it's three month chart. Let's add some flavour. Let's pull up the details of a April 21st blog I wrote. 2,200 new stores being opened this year, up slightly from the year before. Even if same store sales are now off slightly isn't the projectory still upwards? Their business model still seems to be working. Now this, part of a May 1st 2025 blog. A razor thin adjustments to profits. That's what makes figuring out what is going to happen next so difficult. Now a look at how McDonalds traded on Feb. 6th, 2025. This was the morning after it's quarterly earnings report. Now a look at something more extreme. Let's now go back to a different reality three years ago. The McDonald's story is constantly in a state of evolution. The following snippet might help you realize the power of these quarterly earning reports. Sometimes they are stonger than expected. August 6th will be the date their next earnings report comes out. Here now is how McDonald...

Deere and Company With One Day To Go. Yes or No? You Decide How Smart You Are.

Let's start with a question. There is one day to go and Deere today on a Thursday dropped over $13.00 dollars on the day. Should you jump into one day Call options on it right now looking for a rebound or wait until the following morning? Moving forward, in the Friday morning's premarkets at 8:30 a.m. we can see that the stock is up $1.50.
Here is proof of yesterdays downward action.
The premarkets are expecting to open higher. Are you to late to the party if you buy in (one day, last day) Call options that is? After dropping that much yesterday it should rebound right? Right? Let's stop. As the writer of this blog I think the real question should be who really wants to be speculating in situations like this? It's so dangerous. Learning to pick the battles you want to fight should be a very big part of this exercise. Yes I sometimes like to play Deer Call or Put options with only one day to go in their trading life but not after a day when it drops $13.00. To me that sets off alarm bells.
This Friday morning opening chart look ugly? the stock may never come back up on this day. Now let me share with you something that should help you to put into perspective how crazy this exercise is and why the stakes are so high. If we backtract only to the start of the trading week look at how different the mindset was back then. "Deere" was trading so much higher in price and buyers were paying stiff premiums with the expectations that the stock was still going to go higher.
Next, brace yourself for this news. "Deere" is down over $17.00 on the day at 1:10 p.m.
What a downward move.
What a move to the upside on this series of Puts.
Here now is how the markets closed and a look at Deere's five day chart closing out the day.
In summary, Deere was up on the opening to attract new Call options buyers and too shake out the Put option players who went into the morning's opening holding onto sizeble positions. That was something I noticed. Then it dropped wiping out the newly minted Call option holders and allowing Put buyers, there were not many of them left, to purchase even more Puts at a reasonable price and then play "one of the of the month's best Put opportunities". The DJI ended up losing almost 1,000 points on the day! That doesn't happen very often. ** Also see my April 19th blog on trading the thirty day out "Deere" Call and Put options.

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