MCD

Discussion in 'Options' started by oldnemesis, Oct 2, 2015.

  1. http://blogs.barrons.com/stockstowa...-buy-mcdonalds-now/?mod=yahoobarrons&ru=yahoo

    http://www.fool.com/investing/gener...will-move-higher.aspx?source=eogyholnk0000001

    http://www.thestreet.com/story/1330...arket-uncertainty.html?puc=yahoo&cm_ven=YAHOO

    http://finance.yahoo.com/echarts?s=MCD+Interactive#{"range":"2y","allowChartStacking":true}

    Trade:
    With MCD at 99.79
    Jan 85/80 bull put spread for a net credit of $32
    Yield = 32/468 = 6.8% in 105 days or 23.8% annualized
    Prob = 92%

    Price..... Profit / Loss .........ROM %
    60.00..... (468.00)............. -93.20%
    75.00..... (468.00)............. -93.20%
    80.00..... (468.00)............. -93.20%
    84.68.......... 0.00................. 0.00%
    85.00........ 32.00................. 6.80%
    90.00........ 32.00................. 6.80%
    100.00...... 32.00................. 6.80%
    110.00...... 32.00................. 6.80%
    115.00...... 32.00................. 6.80%
     
  2. I like this new format better than your old Conservative Options Trades thread, which got moved from the Option forums to Journals. Each trade idea now stands on its own instead of getting lost in the old thread.

    =================================


    Now on to MCD



    IMO ...... $0.32 credit is unacceptable, you have to pull in at least $1.00. So my trade idea for MCD would be:
    • MCD at $99.79
    • Sell Jan 15, 2016 95.00 put at $2.73
    • Buy Jan 15, 2016 90.00 put at $1.55
    • Credit $1.18
    $10.00 closer to the underlying than the OP's idea, but you should be confident in the bullishness of MCD before you enter the trade.





    :)