NEW DIRECTIONAL PUT PLAYS
McDonald's Corp. - MCD - close: 94.36 change: -0.34
Stop Loss: 94.85
Current Option Gain/Loss: Unopened
Time Frame: 2 to 3 weeks
New Positions: Yes, see below
Why We Like It:
If the chart is any indication then investors are worried about MCD. Shares peaked in April of this year. Since then MCD has produced a bearish trend of lower highs and lower lows. The most recent weakness has pushed MCD toward its late August lows near support at $94.00. A breakdown here could signal a drop toward $90.00.
I am suggesting a trigger to buy puts at $93.75. If triggered our target is $90.25. Our time frame is only two, maybe three weeks as we do not want to hold over MCD's earnings report expected in late October.
NOTE: Just because the option looks cheap, I would not go overboard on your position size.
Trigger @ 93.75
- Suggested Positions -
Buy the NOV $90 PUT (MCD1316W90) current ask $0.65
Entry on October -- at $---.--
Average Daily Volume = 4.3 million
Listed on October 07, 2013