http://finance.yahoo.com/news/mcdonalds-mcd-lags-q2-earnings-151503333.html http://finance.yahoo.com/chart/MCD A lot has been written about MCD, It has had a long run up, a disappointing earnings report and a sharp snap back. I'm giving it a bottom at 90 and a roof at 130. Trade with MCD at 117.52 Jan '17 130/135//90/85 condor for a net credit of $64 yield = 64/436 = 14.6% in 170 days or 31.5% annualized Price..... Profit / Loss..... ROM % 60.00........ (436.00)........ -87.20% 80.00........ (436.00)........ -87.20% 85.00........ (436.00)........ -87.20% 89.36............. 0.00............. 0.00% 90.00............ 64.00........... 12.80% 105.11.......... 64.00........... 12.80% 126.33.......... 64.00........... 12.80% 130.00.......... 64.00........... 12.80% 130.64............ 0.00............. 0.00% 135.00....... (436.00)......... -87.20% 160.00....... (436.00)......... -87.20%
Everyone is so negative with MCDs, but I think it is across the board of what people want and don't want. They heard enough information that GMOs and corn syrup bad for us, we want more of clean food, and if MCD and the rest don't change, people just plain stop going as often. I have had one burger from them in three years, I use to got 1-2 times week when younger, now times that by just million people, that could be a huge drop. Heard yesterday that number one drink people buying now is bottled water, first time this has happened that soft drinks is not number one, can you imagine this? People don't want corn syrup. Sugar companies are now going to make more money and corn prices will come down, it is a vegetable and better for cattle. So MCD here have one dollar giant cokes, now I go in there once a week to buy that and seat in cool temps and clean seating and plug into internet, no one bothers me. I won't eat anything there as not in my diet, plus it is like plastic food to me, but I they have people wrapped around the building for drive thru and people coming in. It is a buy MCD for me at 118.07
Funny thing is nobody likes to admit that they eat and enjoy McDonald's. It's hip and cool to say that McDonald's sucks, tastes like crap and you would never go there. These very same people can be caught in the McDonald's drive-thru. MCD is not going anywhere. They will continue to grow and be popular with people globally.
MCD is not a fast-food company, but rather a real estate company. How will the eventual rise in interest rates affect it?
You are looking at outcome at expiry. Where can I find profit-loss curves for intermediate dates? Jan '17 expiry is a bit long for me (168 days), or are there equivalent shorter date condors and are they better/worst than this? Thanks.