Publish date:

McDonald’s Could Set Up Perfectly for Options Traders

Dan Passarelli talks about a trade in McDonald’s Corporation (MCD). This stock has been moving lower. For option traders this could be a perfect opportunity.

In Today’s Trader Exclusive, Dan Passarelli discusses a trade in MCD that was executed in his Market Taker Group Coaching session. Recently, the stock has been drifting lower, and while it doesn’t look great as an investment, recognition of the trend presents opportunity for option traders. The 95 price level has acted as resistance, so Dan recommends executing a credit spread strategy against that level. He notes that the stock has a high level of implied volatility, and suggests selling the 95/97.5 call credit spread to collect a .30 cent premium with high probability. To learn more visit http://markettaker.com/gc.

TheStreet Recommends