Supersize Me

I have been writing about taking a position in $MCD for the past 2-3 days and finally decided to pull the trigger on the trade with about 5 minutes to go in Friday’s trading.  After a lengthy deliberation, I decided to go long the Sept 87.5 calls.

Like the trades in $KO and $D, I have scaled back my risk to 0.5% of total capital.

This market is rip-your-face-off scary, so I’m trying to weave in and out of a few small trades here and there, all while remaining extremely cash heavy (like 95%).

Notice in the chart below how well $MCD has fared compared to the S&P 500 since early May.  That, folks, is relative strength.


Using my reference chart, I will reevaluate this trade when price breaks 84.  My target is 88 and hopefully a nice return on those options.

MCD 2011-08-05

This entry was posted in Options, Trades and tagged , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s