On August 19, I recommended that you close a MCD call and open a MCD October 100 put. If you bought in, consider selling to close the position now to secure gains.
McDonald’s along with many other stocks were beaten silly, as the Dow fell more than 1,700 points over the last seven sessions.
That’s brutal.
After you close the MCD put, consider going long MCD again. The stock is now oversold and could rebound shortly off recent lows. RSI and MACD alone are on the floor and could reverse at any time.
While there’s still considerable risk in the overall market, consider buying to open a small position in the MCD December 2015 92.50 call up to $4.50 and / or the MCD October 2015 92.50 calls up to $3. I’m just looking for a quick gain here on a rebound before we exit and move on to the next moneymaker.
Ian L. Cooper
Forgotten Profits
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