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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 ...
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Biden -Tilray - Thank You Joe

Look at this chart on Tilray.
On Thursday morning I noticed that one of my screens tracking marijuana stocks showed everything jumping up. That has never happened in recent past so I knew something was up. Can you see the little jump I am talking about on the five day chart above? I jumped in and then I jumped in the last hour of trading. Here is the option trade I did. I purchased options that still had a few months time in them.
The bid of $1.22 ask $1.45 was actually a Friday morning opening reading. I sold out to quickly. Better safe than sorry. Now here was the news.
Here now is how Tilray closed the next day, a Friday.
If your not up to speed on Tilray, here is it's five year chart. So much money has being wasted to get to this point. All these stocks in this sector are like wounded soldiers still standing. Will todays good attract additional interest? That's the new question.
So what are some late to the party option players now doing. Some are looking at the 3 series of Call options with a January 2023 expiracy date the mindset the stock will pop again. They might be right. Buy the 3 series and sell the 5 series against them. Here is how they traded on Friday.
I like Village Farms better as I recently read that they provide the Ontario market with the top two brands of marijuana. One brand has a 16% market share and one brand 15%. One final note. With the profits I made on the above trade I purchased Sundial Call options. I have written about this company before. They are based in Western Canada and are now also investing in the booze business. Their focus this year has being to acquire more retail outlets.
Options on two dollar stocks are more interesting than options on three dollar stocks.

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