MCD To $230 After EarningsEarnings is a risky time to trade options. Today I was looking for my next stock to trade options with and I saw a great buy opportunity for MCD with various technical indicators I use. I wasn't disappointed seeing myself up 5% and the potential to go up much higher. However, after I bought the position and the market closed I realized MCD is reporting earnings. Has anyone else ever made that mistake? Or intentionally? Either way I did some digging on the internet and found a report that offered technical evidence that is accurate 70% of the time that MCD is predicted to beat earnings. Beating earnings is one thing, but a good conference call is another.
I am excited to see that they have a 70% chance at beating earnings, and my personal belief is that a conference call should not have too negative of an impact unless something really looks wrong for the outlook of McDonalds but that seems highly unlikely.
So with a predicted earnings beat, and uneventful conference call. I put in a trend line that outlines McDonalds potential high for Monday 11/9. The trend like peaks at $228 while I believe it could go even higher and hit $230.
I could be completely wrong and McDonalds could miss earnings and the opposite could happen, or we wouldn't see that high of price movement. But the odds of an earnings beat are in my favor and I will share my profit or loss on Monday. So make sure to follow!
What do you think will happen? If you agree leave a like! If you have additional detail or disagree please leave a comment! Thanks!
