Happy weekend!
This position in MCD has been in my portfolio for nearly 3 months and had to be rolled twice, but it finally came good with a nice bit of profit this week.
This week:
$200 profit in McDonald's (MCD)
$200 profit in MCD
At the beginning of May I sold a $255 cash-secured put in MCD expiring Jun 21 for $195.
Unfortunately, MCD continued dropping and I ended up rolling the position to Jul 19 for another $177, for a total of $372.
At the beginning of July, MCD continued to drop below $255, all the way to $245, and I decided to roll it once more to Aug 16, for another $200, bringing the total to $572.
Of course, once I did the roll MCD rebounded and continued to rally all the way to $260. Because I had collected so much premium, the position was now showing a profit, despite having more than a month to go to expiration.
Typically when this happens, I'm quite happy to sit on the position and try to make more money out of it.
However, with MCD earnings coming up, I wanted to try to close the position at a profit instead of holding it through earnings, which can be a bit of a dice roll.
Closing a previously-troubled position for $200 isn't too bad. I'm hoping MCD has a drop after earnings so that I'll be able to open another position.
This makes it 4 of 4 winning trades in MCD with a realized profit of $498.
In 2023 MCD contributed 3 of 3 winning trades and $348 profit.
The entry, management and exit of this trade was updated in near real-time for my private community. It costs $49 a month, so this one trade would have covered the cost for July.
Closing thoughts & useful links
Even though we had quite a decent amount of volatility this week, I was reluctant to enter positions with earnings coming up as the stocks could move either way.
Next week there are some portfolio favorites like KMB, TXN, ABBV among others. Any weakness and I'll be pouncing on the opportunity to open new positions.
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.