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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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Exxon Has Just Had Like Four Days Of Going Up.

Exxon just broke it's previous three month high.
Now it's five day chart. The 117 Calls have doubled or tripled in the last two trading sessions.
Now it's chart as of 10:42 a.m. this morning.
Today is Wednesday. The markets are closing today at 1:00 pm., then closed tomorrow for Christmas and then open again for a full trading day on Friday. Now this. A look first the Calls which are $.30 cents "out-of-the-money" and expire on Friday.
Now the Puts which are already like $.30 "in-the-money".
Expectations are that the stock is going to go up and that there is still a full day of trading on Friday. Here is what the markets and what the price of oil are doing.
Can you see how traders have a preference for the Call options and are hoping Exxon continues it's natural progression upwards. They are prepared to pay somewhat of a premium to be positioned in this situation. I don't know what the outcome is going to be. Nobody does. As a reader can you see the complexities of trying to figure out this outcome? My point is that option trading on Exxon is a fair game. Let's watch and see what happens. Here is how it closed the day. Remember the markets closed at 1:00 p.m..
One thing to notice is the volume of trading today.
Low volumes means big stock movements are less likely to happen. Now Friday morning. Action in the first five minutes of trading. A slight dip and then a light recovery. The Puts didn't really drop enough to make the Put holders any money. Buying the 119 series of Calls on the opening or on the previous close created a double or triple! The 119 series of Calls opened at $.25 as the stock opened down and 72 seconds later was trading at $.70. You had to be buying the Calls right on the opening. There was no time to be messing around. This was a pivotal moment.
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Imagine getting out this early in the day with a healthy return. Now this towards the end of the first thirty minutes of trading. Notice the volume of trading is next to nothing. The remainer of the day for what happens with this series of Calls and Puts has suddenly become inconsequential. The timeline for doing any further trading does no warrent putting fresh money into this position is no matter what the eventual outcome turns out to be. Yet hold that thought. There may still be a suprise.
Part of the allure of trading options on this stock comes from knowing that these types of pivot points exist. ** A late in the day update about one hour left to go.
The morning Puts we saw at $.17 crept back up to $.31 cents. Now two charts (with the first being the Puts) showing how both the Calls and Puts traded on the day.
Finally it's one day chart.
These are dangerous options to play, even for day traders. Morning reversals as of late are the norm.

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