We’ve got an oldie, but a goodie on our hands today. It’s a stock I’ve covered a few times in years past.

McDonalds! Ticker MCD. I like to call companies like this *said in a thick country accent* “Good ‘ol American blue chip company.”

It pays dividends, everyone knows how they make money and they are the biggest fast food company in the world.

My set up on it is as follows:

If MCD breaks above $116.45 one could be bullish. My timeframe for MCD to complete the channel to the top side would be about 3-4 months. If you’re buying options, make sure to buy a solid amount of time, like Jan.

There are literally countless strategies one could do down here. It’s up to you, which one you want to play. One could consider Oct put sales, buying shares, a debit spread, however you determine to play it, I feel the $114 area is a great support!

Target 1 is $124. Target 2 is $131.55

If one bought enough shares to do covered calls, I would being to sell them if MCD traded up into the $124 price range.

This trade appears to be a simple buy low, sell high play in a channel. From here, trade your plan and mitigate risk! Thanks for reading. You all rock!

 

Jerremy Alexander Newsome

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