Trade thinks Bottom is in for MCD

>> 15000 MCD Nov14 95.0 Calls $1.81 ASKSIDE ISE 11:14:31IV=11.9% +0.1 MIAX 259 x $1.76 – $1.81 x 52 BATS OPENING Vol=15k, Delta=44%, Impact=663k/$62.7m, Vega=$283k MCD=94.63, OI=464

Trader bought 15,000 MCD Nov 95 Calls for $1.81

15,000 Calls controls 1,500,000 Shares of Stock

O: Volume vs Open Interest
15,000 vs. OI: 464

Have I traded this stock before and made money on it?
YES YES YES

-Chasing Trades: In General: 5-10% Rule
I never chase more than 5-10% of the initial price the trader pays

They bought Calls for $1.81: I would pay up to $.10 more than they did: 5%
Option is under $1.00, 10% Rule
Option is Above $1.00, 5% Rule
Entries are always Great, but where are Good Exits:

-In General: DayTrades, Swing Trades, and Hybrid Trades

MCD today I bought November Calls: 2.5 Months Away
The Further Out, the More Exits I can have
The Closer to Expiration, the less Targets I will have

MCD Bet is $2.7 Million

Andrew Keene
KeeneOnTheMarket.com

Submit a Comment

Your email address will not be published.

TradeThirsty

Your ultimate source of knowledge about the markets.

Recent Posts

Get Our Free Daily Trading Videos

Delivered To your Inbox

By submitting your information you agree to our Terms of Service and our Privacy Policy