Javascript DHTML Drop Down Menu Powered by Drop Down Menu
FullyInformed.com - Options and Stock Strategies For Income

SignUp For Updates 

  You are here:


Bookmark and Share
 

McDONALD'S
CORP
 
About The Company

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
 
By using this site, 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 TRADES BY YEARS
VIEW McDonald's-2011 TRADES
VIEW McDonald's-2010 TRADES
VIEW McDonald's-2009 TRADES


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.

mcdonalds1

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.

mcd2

 

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.

ALL
PORTFOLIOS
INDEX
U.S. STOCKS
RETIREMENT PORTFOLIO
CANADIAN STOCKS

 
CURRENT U.S.
STOCK PORTFOLIO
INDEX

AT+T
CLOROX
COCA COLA
INTEL CORPORATION
JOHNSON & JOHNSON
KRAFT FOODS
MCDONALDS
MERCK & COMPANY
MICROSOFT
NUCOR CORPORATION
PEPSICO
SPYDER ETF
VISA
EXXON MOBIL
YUM! BRANDS

 
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)
1.2     19.50     730.50 4599.25
    End of 2009 - Income - $4599.25  7.6%                
McDONALD'S TRADES BY YEARS
VIEW McDonald's-2011 TRADES
VIEW McDonald's-2010 TRADES
VIEW McDonald's-2009 TRADES

 

 

Disclaimer: There are considerable risks involved in all investment strategies. Trade at your own risk.
Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed or presented are financial advice, trading advice or recommendations. Fullyinformed.com is a private website. Everything presented and discussed are the author's ideas and opinions only.
By using this site, 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 use this site. The author of fullyinformed.com assumes no liability for topics and ideas discussed, errors and omissions, ads and their content and external links. Any corporate insignia used are registered trademarks of their respective company or corporation and are being used for identification purposes only. All material copyrighted by FullyInformed.com. Reproduction in whole or in part prohibited. Copyright 2008

 |  site map  |  privacy policy  |  contact me  |  subscribe  |  exchange links  |  the author of fullyinformed  |