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$220 profit in PEP & MCD

Writer's picture: themoneyloafthemoneyloaf
Dec 5, 2024

Updated: Dec 7, 2024

Happy December (already?!)!

 

Quick note: last chance to indicate your interest for my upcoming options course in January 2025, you can find it here. 

 

The link is closing 24 hours after this email goes out and I will be sending the link to the live info session soon after that. 

 

Details about the live session and all other relevant info can be found here.

 

This week:

  1. $65 profit in Pepsi (PEP)

  2. $155 profit in McDonald's (MCD)


 

$65 profit in PEP


I'm sharing this trade mainly because it's nice to have entered 100 trades since the launch of this public portfolio and my course! 

 

This was a quick trade in PEP, I sold the $155 cash-secured put expiring Dec 20 and received $125 in premium.

 

Just 9 trading days later the market price of that put option hit $60 and so I bought it back. 

 

Total realized profit on the trade was $65 (or about 52% of max profit). 


options-profit-pep

PEP has been in and out of the portfolio in 2024 with $333 realized profits coming from 5 wins from 5 trades. 

 

Note that this is Trade #100 but it's not the same as 100 profitable trades. That number is actually 99 because of that KO trade mentioned above. Once that trade closes (or any other trade really), then it would be 100 profitable trades. 

 

In any case, still a nice milestone to hit! 

 

As always, all these trades are shared as updates to my private community just to share my own strategy and approach to managing my portfolio, if you'd like to check out my private community for updates within my real options portfolio (not trade recommendations), check out the link below. 



 

$155 profit in MCD


Towards the end of October, there was an outbreak of e.coli that was linked to MCD, and their stock dropped something like 6%. 

 

Initial reports seemed to indicate that it was pretty localized, plus chances are a big organization like MCD is well-prepared to deal with such incidences, so I decided this was an opportunity to initiate a new position, selling the $265 cash-secured put option expiring on Dec 20 for $255.

 

However, there was always the chance that it does blow up, so I only tracked it as a bonus trade, which are typically trades that I'm 90% comfortable with, but may have some reservations about. 


options-profit-mcd

Thankfully my initial assessment was correct and MCD rebounded quickly, 

 

As you can see in the screenshot above, this was almost a free hit, so I wanted to take profits and move on. I paid $100 to close the position and locked in $155 in realized profit or 61% of max profit. 

 

I've been in and out of MCD almost monthly in 2024, with $1,921 in realized profit across 10 out of 10 winning trades. 

 

Quite a few of them have been tracked and shared on my blog, you can read about them at the link below. 



 

Closing thoughts & useful links


Just 4 weeks to 2025 and it looks like 2024 is going to be a really strong year for the market. 

 

This public portfolio only had 4 open positions right now, and while I'd prefer to have more, I don't want to chase trades while the market is at a high. 

 

Doing nothing and being patient is a strategy! 

 

Have a good weekend!

 

 

  • 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. 

 

Just a reminder that this newsletter is set up to receive replies - so if you have a question or comment, feel free to hit reply and send it over or drop me a DM on Instagram. 


 

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.

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