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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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Playing The Charts and Forgetting Everything Else

Lowe's. Look at this chart. Forget trying to understand if their business model is getting better.
Four trading sessions to go and these units are "out-of-the-money" Calls. What's going to happen? Here is the Tuesday's action.
Now here is what the chart looked like and what the markets did on the day.
Do I like playing options on Lowes. Not really. Actually I very much dislike them. It's a difficult industry to understand with all to many variables coming into play. In this case it's chart made these options a compelling buy. Tomorrows story is anyones guess.

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