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

Option traders on Friday mornings just want to be in and out in the first hour or so of trading on short term options. In the second half of the day most of the action calms down. McDonalds sold off a little bit yesterday afternoon and firmed up a bit towards the closing. Could this "mostly downward trend" continue? Here is a partial look at some of the opening bell's activity. Today is 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. The McDonald stock jumped up $4.98 and the 317.50 Puts we followed all day yesterday which are now "out-of-the-money" acted accordingly. They shrunk in value. 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 then started to come off a touch. These Call options where not attacting all that much attention. The bid and ask jumped up on no volume. ...
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Interday Trading Opportunities. Feb 15th - Boeing

Let's talk about Boeing. The stock was down $1.01 on the day. Here is it's early morning chart.
Call you see it drop a touch before 10:a.m.? Now here is it's chart on the day.
Here is what I did.
In at 9:45 a.m. at $365.00 about ten minutes to early and in at 10:04 a.m. at $305.00 just as the stock started to rebound. That was good timing. I was buying the 215 Calls which expire in three days. That was a chunk of money and what I was really hoping for was a $2.00 quick rebound. That didn't happen and I quickly found myself babysitting something I really didn't want to be in. You can also see my second buy in above. Now check on the chart to see the action between 9:30 a.m. and 11:30 a.m. when I was in this position, now with two contracts. I got tired of waiting and I was lucky to get out before the selloff that happened around 12:30 p.m.. You can see my sell ticket and it's timing also on the ticket shown above. Out of both contracts at $380.00 with one sell ticket. I still liked Boeing as it had a big airplane order this week. My focus for the week however was to shadow the market and take small quick profits. I made less than $70.00 on this one and I found myself stuck in the position for almost two hours waiting for a pop. Talk about painful. Then I double dipped. I seem to have a high threshold for pain. I witnessed Boeing selling off a bit after I got out and I wanted to get back in the action. This was forty minutes after I got out. I was now hoping for an afternoon rally.
I bought back in at 12:10 p.m.. Look back up at the chart again to see where Boeing was at then. It was off in price. My timing to get back in was good.This time however I wanted more upside leverage so I moved the striking price up one series. This time I purchased the 217.50 Calls (vs.the 215 Calls) which was a higher risk but offered more of a return if the stock rebounded quickly. He is what I did.
I bought four contracts at $.96 each at 12:10 p.m.
I got out after waiting just over 1.5 hours to make $25.00 less commissions on each of four contracts. I got out at 1:42 p.m. at $121.00 a contract. That trade was a touch smoother. No one was giving out free money today. Boeing closed the day down $1.01.

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