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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...
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Turn Around Situations On A Tuesday - Walmart

First of all I don't really like playing one week options on stocks on a Tuesday. I would rather wait until Wednesday and look for a mid-week reset in the markets. That said, Walmart's one hour sell off on a Tuesday morning kind of tweaked my interest. Let's follow this together a see what happens.
One observation. Look at the volume of trading in the lowest series of call, the 90 series. They are the ones to stand to gain the most in any mini-short-term uptick. Yet then again, maybe the stock will continue to go lower. Here is it's five day chart as of seventeen minutes earlier.
Now the indexes.
Now a few minutes later at 11:02 a.m.
Now the same three series of Call options starting with the lowest striking priced options and the ones with the lowest trading volume.
A bid of $1.01-$1.08 has now jumped to $1.22 to $1.29. Doing the math on the higher two series offers equally as impressive gains.
Purchasing on contracts sizes of 10 or 20 could eke out small gains. This kind of stuff goes on all the time. The danger of this is of course that this rebound could quickly "Peter out". I would rather do it on a Wednesday to try and catch a mid week turnaround rally. I will show you the end of day closing readouts later. The action at 3:00 p.m..
At this point in time I would get out and just call it a day.
Notice now the sideward trend kicking into the afternoon trading. Short term option traders need not play these choppy sideways markets. Proof of this is shown in these following three readings.
Notice the wide "bid" and "ask" in the 90 series of Calls at the close?. Why is this? Well the option makers are giving themselves protection from what the morning opening bell might bring. Who needs to be part of this indecisiveness? The next two series of options also closed weak.
Who wants to be a daytrader? The DJIA closed down the day 178 points.

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