When You See A Stock Stop Falling On A Wednesday Morning Can You Buy It? "McDonalds"

That's a difficult question to answer because you don't know if it is going to drop some more and buying "two day out options" looking for a reversal doesn't buy you a lot of time.

Perhaps the next week out Call options are a better way to go. Yes they cost more however they offer seven full days of trading life.

Now it's five day chart. Can you see its big drop and then a second drop? You don't see that very often and to me the end of a second drop like this is a buying signal. Not everyone would agree.

Now this at 10:48 a.m..

$250.00 jumped to $340.00 on the short term Calls and $450.00 jumped to $501.00 on the "end-of-next-week" Call options. Now it's one day chart at 11:00 a.m.

Now it's five day chart.

Now this at 11:39 a.m.

...

Now look at how they closed the day. This is a different story. First the short term Calls.

Now the Calls that expire at the end of next week.

Look, trying to play McDonalds down and then up and then down again is a bit of a stretch. My point is this kind of action does sometimes happen. Wednesdays are the best day of the week to be looking for this Zig-Zag type of action.