McDonald's Corporation franchises and operates
McDonald's restaurants in the food service industry. These
restaurants serve a varied, limited, value-priced menu in
more than 100 countries globally.
The restaurants are
operated either by the Company or by franchisees, including
franchisees under franchise arrangements, and
foreign-affiliated markets and developmental licensees under
license agreements.
During the year ended December 31, 2007,
the Company sold its businesses in Brazil, Argentina,
Mexico, Puerto Rico, Venezuela and 13 other countries in
Latin America and the Caribbean, which totaled 1,571
restaurants, to a developmental licensee organization.
The
Company and its franchisees purchase food, packaging,
equipment and other goods from numerous independent
suppliers.
Terms
Of Use
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you agree to be bound by its terms of use.
The full terms of
use can be read here.
If you do not agree to the terms of use, do not access or use
this site.
Nothing presented is financial advice, trading advice or
recommendations. Everything presented is the author's ideas
only. The author accepts no liability for its use including
errors and omissions. You alone are solely responsible for your
own investing and trading. There are considerable risks involved
in implementing any investment strategies and losses can be
large. Trade at your own risk.
McDONALD'S
CORPORATION (MCD) - 2009
ONGOING EVALUATION
& TRADE
This is one of those stocks where stock
investor sites like fool.com praise it and tell everyone how
if they had only bought it 20 years ago they would be up
maybe 388%. Well if I had known 20 years ago that this stock
would give me a 388% return over 20 years I would have
bought it. What is the point of telling investors today that
this stock should have been bought 20 years ago? So instead
let's look at the stock today and decide what the goal
should be. My goal is to make an income from naked put
writing until I am assigned. Then I want to sell both calls
and puts. To begin let's look at the chart on this stock for
the past few months. The stock is trading roughly between
$55 and $60. When I look at the 10-20-30 moving averages,
the stock has a great trend, basically not really going
anywhere. This is great for naked puts and covered calls.
McDONALD'S REVIEW - Year 1
This is my review of
McDonald's which I did prior to commencing my trade. From
June until August, the S&P 500 has had a great run, but MCD has moved basically nowhere.
Here is McDonald's chart for the past few
years. The stock moves between 50 and 60 through most of the
time. Looking at Oct 2008, there is a big drop when the
market came apart with the bear plunge. The stock fell to
around 47.00 which marked its low for the year and also the
low for the past few years.
Overall McDonald's is
growing at around 3% a year, which in fast food is nothing
to be excited about. But the company is as big as many
banks. So is McDonald's becoming more like a utility stock?
It has raised its dividend throughout the past few years and
continues to grow, albeit slowly. The beauty of a stock like
this though, is its size. Lots of volume, busy options and
in particular, this company should survive through most
recessions. This means if the company's stock should fall, I
won't be concerned about having to buy more, to average down
and keep writing covered calls.
McDonald's Strategy:
Starting By Selling Naked Puts Until I am
assigned or I can raise enough capital to put myself into the
stock in the mid 50's range.
Should I be unable to sell puts at
the closest month out, then I am willing to go further
out in time. However the main objective with the puts is
to raise enough capital to have my share valuation in
the mid 50's.I am not interested in owning the stock
long term. I am interested in income from put and call
writing.
Should the stock fall dramatically, I
will not be adverse to selling naked calls OTM.
If assigned I will sell Covered Calls until
exercised
If the stock should fall too low making
covered call selling impractical, I will add to my position to
lower my overall cost either through purchasing the stock or
selling additional naked puts or calls depending on the
circumstances.
Should you find my strategy and ongoing evaluation of
this trade of value I hope you will consider a tip
for the time I spend detailing out this trade.
I have set up a Paypal account for those
who would like to donate. Thank you in advance. Remember, nothing on my site is financial advice.
They are just my ideas and opinions. Investing is risky and losses can be large. Trade
at your own risk.
Read the
terms of use
YEAR 1: 2009
Trade Commenced August 2009 Goal for 2010:
5% (5 months)
Strategy: Naked Puts until assigned stock
Capital In Use At End Of 2009
60,000
Income Earned in 2009 (5 months)
4599.25
Return On Capital in 2009 (5 months)
7.6%
Join The
Options
Forum
I set up a Yahoo forum for those interested in discussing selling stock
options for income including covered
calls, selling naked puts, spreads and other option and stock strategies.
JOIN HERE
YEAR - 1: 2009
TRADE COMMENCED March 5 2010
Aug 25 09
56.45
Sold 10 Naked Puts Oct 52.50 @ .50
.95
19.50
480.50
480.50
Sep 24 09
56.12
Sold 10 Naked Puts Dec 52.50 @ 1.10
2.0
19.50
1080.50
1561.00
Oct 16 09
58.78
Expiration 10 Naked Puts Oct 52.50 expired
Oct 20 09
58.94
Sold 10 Naked Puts Jan 55.00 @ 1.00
1.8
19.50
980.50
2541.00
Nov 13 09
62.55
BTC 10 Naked Puts Dec 52.50 @ .05
-0.09
19.50
(69.50)
2471.50
Nov 13 09
62.55
Sold 10 naked Puts Mar 57.50 @ 1.48
2.5
19.50
1466.75
3938.25
Nov 27 09
63.22
BTC 10 Naked Puts Jan 55 @ .05
-0.09
19.50
(69.50)
3868.75
Nov 27 09
63.22
STO Sold 10 Naked Puts Jan 60 @ .75
(To stay within our confines of the above chart I am selling
at the upper range of the chart, so it will be important to
keep watch to make sure the stock doesn't tumble without my
BTC these puts)
