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.