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McDonalds Was On A High This Week Before Common Sense Kicked In

There was news. McDonald's is winning at drawing it's customers back in. Quarterly earning were released this week. The stock jumped on Thursday on this news. See this chart. Now it's Puts trading on Friday, the day after. Logic has suddenly set in. With gas prices so high who can afford the gas necessary to drive to a McDonalds? A low of $.10 to a high over $5.04. (See the small Friday morning opening bounce upwards which would have driven the Puts at that time down to the $.10 price range). What a trap. You should you be thinking about opportunities like this. Sometimes they happen out of the blue.
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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.I.A closed on the day.
Trader's here can take their gains and avoid all the irregularities of last day option trading. Look at how few option traders are involved in this action. It's shocking. * Remember the 310 Puts we watched trading at $1.00 per contract or a hundred dollars just a day or two ago? Here is how they closed out on Friday.
It helped the DJIA closed down on the day over 790 points.
A final price of $578.00. Can you see how "Puts" can jump to life going into Friday trading sessions. Thee are not normal markets.

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