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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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The Markets Never Stop. The Stock Lowes And Forward Looking Thinking.

An earning's report came out and some of the reason's the stock dropped made sense. Let me tell you what happened and why. Lowe's sold off in price over $12.00 in one day on an earnings report. How bad was the report? Well that is something that is debatable. Some people would say that past sales are not a good indication as to what might happen next.
Not many option traders attempted to trade in it. Some traders derive more pleasure in playing the rebounds after these types of announcements come out.
Here is what their C.E.O said. It is her job to try to put was a positive spin on things. Every word she uttered was well rehearsed.
Lowes and Home Depot are always difficult to play because their stories can be spun in so many different ways. On a different note, the Put options five dollars "out-of-the-money", which were the 265 series of Puts were a cheaper and a more profitable way to play this action than the 270 Puts. Yet then again, if the stock only dropped five dollars then that wouldn't be the case.
When you see something that say $6.30 up $3.96 that means the Puts ended the previous day at $2.34. Learn to pick your battles. Lowes came back a bit the following morning. Home Depot did not as that stock might have dropped in sympathy.
Now this. The market never stops. Lowes on the following morning was trying to shake off it's earning report. Florida still needs to be cleaned up.
Let's see if these Calls will have some strenght. Here they are on Friday morning, the day they expire.
This is an example of playing short term rebounds.

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