MCD is in big trouble. May not exist in 5 years

hajimow said:
In short this method is used by well pocketed and stubborn traders who have a long vision on a direction of stock and try to reduce the losses or even make some money while the stock is going against their direction. You have to a good long term vision on a stock and be confident on our method. Lets say I were short just 1000 shares of MCD. During just a week, MCD has dropped $10 per share which would be $10,000. If I were short in cash or not confident on my method, I should have covered it at $125 and regret now. I believe MCD will go down but it wont hit the PUT strike price that I am selling in a week.
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I got to give it to you...you came back and posted real trades. Bravo.
 
McDonald's has been a great performing company and stock. However, like other multinational corporations McDonald's appears to have been affected by the strong dollar. MCD is now yielding almost 3% after having a 4% yield almost a year ago. MCD could be given a hold rating and the stock looks like it might be lofty.

I totally expect MCD to be around for the next 30 years and it will still be very attractive.
 
hajimow said:
In short this method is used by well pocketed and stubborn traders who have a long vision on a direction of stock and try to reduce the losses or even make some money while the stock is going against their direction. You have to a good long term vision on a stock and be confident on our method. Lets say I were short just 1000 shares of MCD. During just a week, MCD has dropped $10 per share which would be $10,000. If I were short in cash or not confident on my method, I should have covered it at $125 and regret now. I believe MCD will go down but it wont hit the PUT strike price that I am selling in a week.
More...

http://seekingalpha.com/article/3966956-mcdonalds-short-can
 
Follow Up :

MCD at 129.33, up from 96.44 Return 34.1% plus dividend yield is 2.75% so approx. 37%.
SPX performance in same time period = Down around 2%.

1 year into the OP's forecast that they will be completely out of business in 5. Truly a horrible call.
 
Nine_Ender said:
Follow Up :

MCD at 129.33, up from 96.44 Return 34.1% plus dividend yield is 2.75% so approx. 37%.
SPX performance in same time period = Down around 2%.

1 year into the OP's forecast that they will be completely out of business in 5. Truly a horrible call.
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But he made money because of his bullish bet on MCD: Mostly of the time during this thread he sold Puts on MCD betting it would go up so his Puts expired worthless and he collected his premium.
 
All dips in MCD have been bought past 6 months.
However, it's really looking toppy now....130 could prove to be resistance.

Idea: Sell 130 calls at this level. Purchase the 135 calls as a stop-loss.
Bearish call spread.

Worst case on a 10 lot is a $5k hit.....which seems extremely unlikely.
 
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