MCD

[oldnemesis]

https://www.thestreet.com/story/136...european-exposure.html?puc=yahoo&cm_ven=YAHOO

http://www.fool.com/investing/2016/...gn=article&utm_medium=feed&utm_source=yahoo-2

http://stockcharts.com/h-sc/ui?s=MCD

Trade
With MCD at 116.30
Jan 135/140 bear call spread for a net credit of $37
Yield = 37/463 = 8.0% in 207 days or 14.1% annualized
Prob = 86%

Price........ Profit / Loss........ ROM %
85.00............. 37.00................ 8.00%
100.00........... 37.00................ 8.00%
120.00........... 37.00................ 8.00%
135.00........... 37.00................ 8.00%
135.37............. 0.00................ 0.00%
139.54......... (416.50)........... -83.30%
140.00......... (463.00)........... -92.00%
155.00......... (463.00)........... -92.00%
175.00......... (463.00)........... -92.00%

Alternate Trade:

Jan 90/85 bull put spread for a net credit of $35
Yield = 35/465 = 7.5% in 207 days or 13.3% annualized
Prob = 96%

Price.......... Profit / Loss........ ROM %
65.00............. (465.00)........... -92.50%
75.00............. (465.00)........... -92.50%
85.00............. (465.00)........... -92.50%
89.65.................. 0.00............... 0.00%
90.00................. 35.00.............. 7.50%
100.00............... 35.00.............. 7.50%
110.00............... 35.00.............. 7.50%
125.00............... 35.00.............. 7.50%
140.00............... 35.00.............. 7.50%

 

[oldnemesis]

With MCD at 116.30
Jan 115/110 bear put spread for a net debit of $187
http://stockcharts.com/h-sc/ui?s=MCD

Price.......... Profit / Loss.......... Credit Spread
85.00.............. 313.00................... 37.00
100.00............ 313.00................... 37.00
110.00............ 313.00................... 37.00
113.13................ 0.00.....................37.00
115.00............ (187.00).................37.00
120.00............ (187.00).................37.00
135.00............ (187.00).................37.00
140.00............ (187.00)................(463.00)