https://www.thestreet.com/story/136...european-exposure.html?puc=yahoo&cm_ven=YAHOO http://www.fool.com/investing/2016/...gn=article&utm_medium=feed&utm_source=yahoo-2 http://stockcharts.com/h-sc/ui?s=MCD Trade With MCD at 116.30 Jan 135/140 bear call spread for a net credit of $37 Yield = 37/463 = 8.0% in 207 days or 14.1% annualized Prob = 86% Price........ Profit / Loss........ ROM % 85.00............. 37.00................ 8.00% 100.00........... 37.00................ 8.00% 120.00........... 37.00................ 8.00% 135.00........... 37.00................ 8.00% 135.37............. 0.00................ 0.00% 139.54......... (416.50)........... -83.30% 140.00......... (463.00)........... -92.00% 155.00......... (463.00)........... -92.00% 175.00......... (463.00)........... -92.00% Alternate Trade: Jan 90/85 bull put spread for a net credit of $35 Yield = 35/465 = 7.5% in 207 days or 13.3% annualized Prob = 96% Price.......... Profit / Loss........ ROM % 65.00............. (465.00)........... -92.50% 75.00............. (465.00)........... -92.50% 85.00............. (465.00)........... -92.50% 89.65.................. 0.00............... 0.00% 90.00................. 35.00.............. 7.50% 100.00............... 35.00.............. 7.50% 110.00............... 35.00.............. 7.50% 125.00............... 35.00.............. 7.50% 140.00............... 35.00.............. 7.50%
With MCD at 116.30 Jan 115/110 bear put spread for a net debit of $187 http://stockcharts.com/h-sc/ui?s=MCD Price.......... Profit / Loss.......... Credit Spread 85.00.............. 313.00................... 37.00 100.00............ 313.00................... 37.00 110.00............ 313.00................... 37.00 113.13................ 0.00.....................37.00 115.00............ (187.00).................37.00 120.00............ (187.00).................37.00 135.00............ (187.00).................37.00 140.00............ (187.00)................(463.00)