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Part Two Of What McDonald's Is Doing?

Nobody knows whats going to happen tomorrow. Let's jump forward. $1.64 or $164.00 dollars plus commissions will buy you one "310" series of Puts. In the first twelve minutes of trading only one contract traded. That just shows you how dangerous these option contracts can be. We are not talking about a one day move at this point in time. For option traders holding positions like this which were bought for quick flips an hour of watching the stock becomes a guessing game. Here it is now about seven minutes later. Note this, the pain continues? What's the DJIA doing? This becomes the path you are now on and it's to early to think about it becoming a dead end. If you still like the situation then yes you should buy more if you can afford to lose. Perhaps you made a big score on Disney Calls on the previous day. I have talked about that. Now this at 11:09 a.m. Still the same number of contracts traded. Hold these thoughts. Look at how the 310 Puts and the D.J...
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The Power Of "One-Month-Out-Options" For Short Term Gains.

It helps when the markets rally on a Monday but that's a secondary issue.
This blog is about stocks in the seventy dollar price range with options on them staggered in thirty day intervals. Is trading in options which trade in only in thirty day intervals better than options on stocks in the same price range that expire every Friday? My experience is that options on stocks that trade every thirty days tend to attract less interest which in turn means that they are less susceptible to "market-maker" manipulations. Yet this isn't really a point I want to debate. Now this, a look at the seventy series of Calls on "Carmax" at the end of the trading session today.
Bid 5:70 ask 5:90. Only two options traded on the day. Let's now look at it's five day chart.
So it jumped a touch but nothing to crazy. Now this, I did a blog last Friday, my previous blog where I showed what the same options were trading at on that day. Here is the printout I want to show.
A 10:39 a.m. readout on Friday morning showing only three option contracts traded with a last trading price traded of $4.07. Is there a lesson here to be gained? Yes, thinly traded "one-month-out" options can be successfully traded. What appreciations are there to be gained? Well there is less market maker manipulations. When you put in a closing sell ticket for only one, two or three contract and if the trend of the stock is upwards you will get a fill without going through the game of watching option makers wiggle the "bid-and-ask" in their favour. One month out options, played correctly are also less stressful to hold because the premiums built into an options price for it's time value will not disappear as quickly as the premiums built into one week out options. That's just the way I see it.

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