Stock / Symbol: McDonalds / MCD
Option Strategy: [private_monthly]calendar spread[/private_monthly]
Price at trade post: $94.90
Reasoning: Thinking that MCD will continue to trade between the 92 and 98 range, we're going for a non-directional trade with a call calendar spread. We're leaving some powder dry on this one in case we need to adjust by adding a 2nd calendar. Odds of success on this trade are 70% to the downside and 75% to the upside[/private_monthly]
Trade Details:
[private_monthly]
BTO 5 MCD Jun12 95 calls
STO -5 MCD May12 95 calls
for a max net debit of $0.60 per contract (try for mid at $0.58, bid @ 0.55 / ask @ 0.60, GTC, limit order)
Requirements:
Cost/Proceeds $300
Option Requirement $0.00
Total Requirements $300
Estimated Commission $15
[/private_monthly]
Max Risk: $300
Max Reward: $375 or 125% by May 18
Profit Range: $93 to $97 by May 18
Max Profit at: $95
Suggested upside stop: $92 or add calendar
Suggested downside stop: $97 or add calendar
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