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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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Netflix and the Future Value of Income Streams

Netflix had news.
On the release of this information the stock jumped and here is where it gets really crazy with "out-of-the-money" Call options that expire in two days. Call it insane. What I am about to show are random samplings of this action.
For years now articles have being written on the Netflix business model and what bothered market pundents was how they were losing money on customers giving away their access codes to other users. Other questions. Do upticks like this trigger automated tracking systems set off alarms that catch jumps like this within seconds of these meteoric liftoffs? Do C.E.O's tell their son-in-laws of this impeding action. Did the fellow driving the Porche 911 in front of you buy it with the profits made from acting on insider news? Can you buy Disney or Roku tomorrow and catch similiar gains? In two recent blogs this week I talked about Boeing Calls jumped in price on Biden news about how he was handling one days news on the debt crisis and how Harley Davidson had great earning reports only to watch the stocks price drop on spurious comments about potential headwinds ahead. Were such comments warranted? The markets are full of trickery. Things to think about when you are on the bus in the morning beating yourself up because you wasted money on a Starbuck coffee. Look, option trading isn't for everyone but I am hoping that little blogs like this will raise eyebrows.

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