McDonald’s (MCD) made a new all time high today but has reversed course to now trade lower. P/E ratio was also above 28 which has signalled a top in the past. Let’s take a guardedly bearish stance with a put calendar spread. IV percentile only at the 11th percentile so long vol trades are favored.
TRADE IDEA
Buy to open MCD August $200 puts (expire 8/16/19)
and
Sell to open MCD July $200 puts (expire 7/19/19)
for a $1.80 net debit