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Costco Options With Two Days To Go. Something To Consider , As Strange As It Might Sound

First, Costco is down $44.79 over the last ten trading days. The company sells food and everyone needs to eat. The chart looks like it might now want to rebound. Down $44.79, it's crazy that it could sell off that much in such a relatively short period of time. What about other stocks in this price range like Netflix? Well the Netflix stock is priced at even a higher level. It's at $1,257.00 today and yesterday afternoon it was at $1,213.00. Yes, today it was up $31.30!. My point is high priced stocks can make big moves and that's what makes Call and Put options on stocks like this so potentially rewarding. Most people would never consider trading in Costco options. I get that. More on that later. Now back to Costco doing so poorly as of late. It's now Thursday morning before the markets are open and here is a look at it's "at-money" Calls and Puts. Notice the light volume of the "open interest'. The two numbers reported here are 480 and 358. Whe...
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Does It Look To You That McDonalds Is Gaining Legs Again?

Here is it's three month chart.
Let's add some flavour. Let's pull up the details of a April 21st blog I wrote.
2,200 new stores being opened this year, up slightly from the year before. Even if same store sales are now off slightly isn't the projectory still upwards? Their business model still seems to be working. Now this, part of a May 1st 2025 blog. A razor thin adjustments to profits. That's what makes figuring out what is going to happen next so difficult.
Now a look at how McDonalds traded on Feb. 6th, 2025. This was the morning after it's quarterly earnings report.
Now a look at something more extreme. Let's now go back to a different reality three years ago. The McDonald's story is constantly in a state of evolution. The following snippet might help you realize the power of these quarterly earning reports. Sometimes they are stonger than expected.
August 6th will be the date their next earnings report comes out. Here now is how McDonald's traded last week.
Do you think it is gaining legs? Now this. A look at the prices of this week's Calls and Puts, premarket on a Monday morning. Catch the right direction if you can. Last weeks Call holders did exceptionally well. Both the Calls and Puts offer good value given the stocks recent volatity. The question is once again, in what direction do you think the stock is going to go?
Now the Monday opening with a dip.
Other stocks traded in the same fashion. Now a closing day look.
Now Tuesday. Look at what happened.
...........
The 300 series of Calls are back at $2.01 with three trading days left in these options. At this point in time it's a stay away situation. The stock has had two days of churning. The excitment of starting off the week with a fresh start and with five days of trading life in this series of Calls is no longer there. To be continued.

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