Featured

McDonald's. It's Difficult To Fight Strong Stocks.

Here is McDonalds five day chart at the close on Wednesday. Now here is it's three month chart. Now consider this. In two days the stock is up about twelve dollars. I often talk about Wednesdays being the one day in the week the markets can do reverals. Today the DJIA was up over four hundred points and McDonalds was down 60 cents. It dipped on the opening and came back a bit and then selling pressure came into the stock again on the closing. I personally hate McDonald's food. The internet has tens of Youtube videos saying their fries are poisonous. Yet I get it. But think about this. Whenever a new residential subdivision goes in anywhere in North America there is room for another one of their restaurants to go in. They just pop up and everyone knows what they are. Here now is a snippet I posted in a past McDonald's blog. After a lackluster trading session today McDonald's could drop in the next two days or at least on a Thursday afternoon sell off. Yet nothing m...

Ford Calls on a Friday when the DJAI jumps over 500 Points on the Day

First, back on May 14th I posted a blog entitled Ford Puts - Sometimes They Will Suprise. This blog is the reserverse of that action. First it's Friday May 31st and here is how the DJIA closed the day.
The stock Ford had a good day. Here is it's one day chart.
Let's now look at the 11.5 series of Calls that expired today.
Now let's look at the 12 series of Calls, that's where the real action was.
It's difficult to see the last little colored chart but basically the twelve series of options got off to a slow morning start and then picked up steam as the markets rallied in the afternoon. $100.00 Call options in would have returned $1,500. I have talked about Ford options before and the concept of playing these penny like short term options. It's a game that has being going on for years. If all of this is to rich for your blood the next week options also had impressive afteroon gains. It's not every Friday the D.J.A.I jumps over 500 points. That's what it takes to make this kind of action happen. It's not rocket scientist stuff.
* Ford traded down three cents on the week.

Comments

Popular posts from this blog

Living on Kraft Dinner?

The Little Engine That Could

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?