One Week Options. Are They A Good Bet In Times like This?

Look at how these these four stocks traded last week. 1) What a great week for one week Call option players on Boeing even though the stock ended up down .83 cents on the week. 2) Roku. Roku hasn't yet recovered from a not so good quarterly report. Roku lost $1.13 on the week. (Netflix in somewhat the same space was up $35.780.) 3) Disney suprised. I talked about that in a recent blog. 4) Now Caterpillar. It was up $12.83 Now The D.J.I. was down .11% or basically flat. In good times Call options can be your best friend. To be continued.

Tuesday May 11th. A 473 Point Drop In The D.J.l. In One Day With "Mcdonald's" Options Up and Down

I went into Tuesday with a "McDonalds" "Put" which I sold at 10:04 a.m. I had bought it just before close on the previous day because I liked the chart. First here is it's five day chart followed by a one day chart.
The market tanked on the opening and I didn't wait long to get out At 10:00 a.m. it seemed to be on a rebound. See the chart. I got out once again at 10:04 a.m. Here is the ticket. Like they say, shoot first and ask questions later. The printout is difficult to read but it says out at $5.30 This traded netted me $150.00. I was ok with that.
Everything was down but the day was early. Were the markets oversold? I turned around and played the upside. Sometimes that can be the worst strategy in the world and I did it with two trades.
I liked what I was doing because I was trying to play a morning bounce after a sharp morning decline and my fills on these two trades were at 9:52 a.m and 9:55 a.m..
I got out ten or fifteen minutes later at 10:09 a.m., 4 @ 1.95. I only made a few dollars but I didn't want to hang onto them and see them role over. I was free from that position. Or was I?. At 11:47 a.m. I got the itch again to be back in, this time paying $147.00 each for two contracts, on the same series of "Calls" I just had just got out of at 1.95. At the end the day they closed out a price a touch lower. I can live with that.
Later on in the day when the market started to stop dropping I bought yet another "Mcdonald" 232.50 "Call" at 3:15 p.m., this time with a next's week striking price. I will have eight trading days to sit on it. One of the reasons I like "Mcdonald's" at this point in time is that more people are getting out which should be good for sales and "McDonald's" is not a stock prone to unusual news reports. To be buting in "Calls" on a day the market is crashing hoping for a next day rebound really only make sense after a couple of days of downward markets. let's see what happens.


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