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Showing posts from December, 2023

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McDonalds Is Having An Upward Run. Why?

Here are one series of it's Puts that expire this Friday. They are "out-of-th-money" so it's going to take a bit of a directional move to get a payout. Now it's five day chart. Is the stock going up because the DJIA is up? This to me is more a play on what the markets are doing than the stock itself. Here is how it closed the day. It's largely unchanged from where it was trading at back at 1:18 p.m.. Here is how the D.J.I.A. closed the day. A weak opening tomorrow will do wonders for this position. Let's see what happens.
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A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

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Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slightly out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-ma...
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