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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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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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