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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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Eli Lilly - Expect Morning Moves Like This. Also Costco and Carvana

I don't like writing blogs about Eli Lilly. Why? Three reasons. It's option premiums are expensive and the stock makes giant moves. The third reason is that I know next to nothing about Eli Lilly's "day-to-day" operating realities. If I guess wrong, yes I say the word guess and I am not apologizing for using it, it's game over. Look at what happened this morning, a Tuesday. It jumped upwards after the opening and then sold off.
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The Puts traded down to $12.64 on the stock's early morning blip upwards and then nearly doubled in price on the ensuing decline. A second chart here below shows that action better.
Buy the Puts just after the opening and sell them a few minutes later or wait and sell them at lunchtime.
It's not only Eli Lilly that moves like this. Look at Costco today.
It also was up on the opening and then tanked. This series of Puts moved up in price.
Finally Carvana. The same story. Up on the opening and then tanking.
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If you are a repeat viewer to this site you will know that these are three stocks on my radar list. Look at the low volumes of Put trading in these three stocks. Situations like this are difficult to track. Serious option traders should track the activities of these three stocks on one screen and watch how they trade in the first ten or fifteen minutes of the opening markets. If any of them have popped upwards and if it's a Monday, Tuesday or a Wednesday then tune into the possibities of reversals happening. Watch for me to highlight these recurences in future blogs. This is big boy trading and the stakes are high.

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