Trade Entry I am tapped for capital with other trades actively working. If I were to enter, this would be my entry choices: Jan. 24 Expiry. 200/205 Put Credit Spread. $2.50 credit. Risk and reward are even $2.50. If you want to play earnings (which looks like good idea), move out to Jan. 31 or do both dates. MCD above $205 at expiry keeps the whole credit. Stops – MCD at $198 exit trade. Exit at 50% profit or hold to expiry if looking bullish.
Chart Details Bullish breakout of bear flag. Bullish EMA cross and price 10WeekMA cross. Price should head up to fill gaps IMO. Probably consolidate at each gap. Watch RSI at 75 for bullish slowing. Daily and Weekly trend both bullish. Looks good.
Previous MCD Chart
About Me Thank you for liking, commenting, throwing up a chart, following, or viewing. I am not a financial advisor. My comments and reviews are based on what I do with my personal accounts. moneypatterns.com - Website will be ready for launch mid-January 2020. Thank you for your patience while I try to juggle everything and maintain the same standards. Disclosure - I am long BTCUSD, GBTC. Short term GDX Bullish, SPXS Bullish, CRWD Bullish short term.
i have a confession. still learning. feel like keep making mistakes. so I bought 3 calls 1 put. at 207 down 200 and feel stupid. my option is 1/24 expiration. what do i do monday or don't do? have u done that before and feel like im so close to figuring this out and making a lot of money. anyone want to trade with me to get each other so success?
MoneyPatterns
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@RobFlorio, We want to be net sellers of options. In this way we increase our POP. Probability of profit.
So if we take in credit spreads, then normally you end up receiving money up front and spending nothing. I stated perfectly what to do above.
If you are unfamiliar with options, you should stick to this:
-only trade single options vertical spreads buy one put, and sell one put....or buy one call and sell one call. Limits risk. Limits reward. You are protected always.
-trade cheaper spreads until you get the hang of things. Not $5.00 options which will bleed your account.
Start small and work up.
Your current MCD position - I don't even know what strikes you picked. 1/24 expiry...which calls and which put?
You would want to probably close the calls if they are profitable in my opinion, and then balance out your put to create the put spread which would be selling a put (since you already bought one).
You should educate yourself a little more on how strategies work before the next one. Hope this helps. It took me time as well.
apples34
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@MoneyPatterns are you taking profits at top of first gap fill?
MoneyPatterns
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@apples34, Good morning and thanks for your question.
Personally, if I am holding stock - if you get into the first gap and close to the top, set a stop loss at the top and a rebuy at the bottom of the gap.
This will sell if your gaps closes getting profits and locking them in. Then it would rebuy the bottom retest of the gap.
My opinion with this overly bullish market - MCD is going to top gap fill, but it may not go straight up.
MCD will probably make new ATH's if the rest of the market is.
Hope this helps. I am more of a swing trader than long term investor.
Let me know if you have another question.
RobFlorio
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@MoneyPatterns, great. was wondering. valume rose today is good. is 210 a sell point today with job re port n 207 support?
MoneyPatterns
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@RobFlorio, To me, looks like next support/resistance would be at $210. This would be a good exit for trading IMO.
If you have slightly longer time horizon, MCD has another gap fill at $215. I think a small stop at $210 before MCD goes to $215 and new ATH's.
If I were long, I would hold till $215.
If I were trading, I would take profits in $210-212. Then see if we get a pullback to moving average of $202-205 and re-enter for push to $215.
Hope this helps. Let me know if you have another question. I will try to get back to you before market open.
RobFlorio
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@MoneyPatterns, good. is his mcd sell now it holds on red gap u drew. lower?
MoneyPatterns
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@RobFlorio, Hi Rob,
I think we go higher. Upper gap fill. Earnings coming up. General market bullish.
I was able to get entry today.
Sorry I have not been able to update charts today. Been dealing with City bureaucracy for licensing business. Slllooooowww.
I'm in MCD 205/215 Put Credit Spread. I will throw up another chart later today.
Thanks for commenting. I appreciate all interactions. Good luck and get that money!
RobFlorio
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@MoneyPatterns, did it already move or is 210/212 in play?
MoneyPatterns
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@RobFlorio, Still in play but low enough if you are only doing a $2 spread, you could try 208/210 or 209/211.
We are at 208.36 at time of writing. Next week this time I think we are higher.
Broader market still in rally mode. MCD needs to ketchup.....get it...ketchup LOL