$165 profit in MCD
- themoneyloaf
- 10 hours ago
- 2 min read
Happy weekend!
A couple of weeks ago I said something I was trying to do more of this year was to take advantage of more opportunistic trades. This trade in MCD is one of them.
This week:
$165 profit in McDonald's (MCD)
$165 profit in MCD
With earnings season around the corner, my hands were slightly tied in July because I don't typically like holding trades through earnings if I don't have to.
So when an opportunity popped up to enter a trade in MCD that had a decent risk/reward ratio and didn't require me to hold it through earnings, you bet I jumped at it.
I sold a Jul 17 $265 cash-secured put for $265 credit, and all I needed the stock to do was stay above $265, and it should result in a nice win.
As it turns out, not only did MCD not drop anywhere near $265, but it rallied hard and I could close the trade in less than 2 weeks.
I paid $100 to close the position which led to $165 in realized profits, or about 62% of max profit.
This trade (and all trades in this newsletter) are shared in close-to real time to my private community as updates in my own portfolio (not recommendations). If you're familiar with the basic mechanics of options, you can consider joining the private community to view these updates as well.
And of course the guidance for managing and closing both trades were posted to the community as well.
You can find out more about my private community at the link below.
Have a good weekend!
Useful links
Free mini course: Kickstart your personal finances in 5 weeks
Latest Youtube video: comparing my 8 income streams in 2023 vs 2022
Improve your financial life with my budget and wealth tracker that helps to allocate your budget, calculate savings rate, track your sinking funds, net worth and progresses towards FIRE with minimal input from you - most of it is automated.
Sign up for real time updates (not recommendations) within my portfolio with the Bread Crumb subscription
This article is for educational purposes only. This is my own portfolio which is being managed according to my goals and risk tolerance. Your situation is likely different and you should do your own due diligence before investing in stocks or options.
Comments