$MCD 7/5 Short Iron Condor: profit [201.03, 206.47], LIMIT RISKThis nearly ATM July 5th IC on McDonald's is technically driven. For the past 10 trading days, MCD's open and closes have both stayed within the parallel channel range of 203.73 and 206.16. With a great risk/reward ratio, we are entering into a short iron condor on the July 5th contracts, 8 trading days away, with a maximum profit of 147 with a mere, limited max loss of 103, per contract. This spread is constructed by taking a long position in the 207.5 calls and 200 puts, while simultaneously writing the 205 calls and 202.5 puts. Being an iron condor, we will collect the theta premium as maturity nears. This trade is done for a credit of 1.47, so there is a profit between 201.03 and 206.47.
Technical indicators buttress our neutral sentiment, as the MACD has been extremely close to zero over the past two weeks, the DI+ and DI- components of the DMI are very close to each other (within 26.5 and 27, respectively), the ADX reads an extremely low 14, the Stochastics read 50.5 and the RSI and MFI are both within the range of .
4MCD trade ideas
If You Invest in Dividend Stocks, Do This to Double Your ReturnsIf it seems too good to be true, it usually is. But when I say you can juice your investment returns with the click of a button, it’s the plain truth.
I’m talking about reinvesting your dividends.
It may seem like a minor thing. But if you’re not doing it, you’re leaving a lot of money on the table.
In fact, investors who reinvest their dividends can outright double their investment gains.
Let me show you how…
Reinvesting Can Make a Big Difference
Say you own 100 shares of McDonald’s Corp. (MCD).
Every quarter, McDonald’s pays a dividend of $2.00 per share. That translates to $200 in income from your 100 shares.
When this happens, you have two options:
1. Pocket $200 in cash or
2. Reinvest $200 directly into McDonald’s shares.
Hint: Choose option two.
Now, McDonald’s trades for around $200/share. So instead of pocketing $200 in cash, you get one extra share.
Then you make the same smart choice the next quarter… and the next. True, it’s only one extra share each quarter. But over time, it makes a huge difference.
That’s because reinvesting your dividends takes advantage of compound interest.
Compound interest is the interest on your initial investment, plus interest on all interest earned. This means your interest—or in this case, your reinvested dividends—earns interest, too.
In other words, those reinvested dividends make your whole investment grow much, much faster.
Reinvesting Your Dividends Can Double Your Returns
Let’s walk through an example.
Say you bought $20,000 worth of McDonald’s stock in 1998. You pocketed the dividends from half of your investment. And you reinvested the dividends from the other half.
By 2019, the first account had grown from $10,000 to $66,598. That’s a total growth of 565%, or 9.9% annually. Not too shabby.
Meanwhile, the second account—the one with the reinvested dividends—had grown from $10,000 to $120,073. That’s a total growth of 1,100%, or 13.0% annually.
Now that’s remarkable.
Your money grew almost twice as much. And the only thing you did differently was reinvest your dividends instead of taking the cash.
Reinvesting your dividends does two things:
1. You get more stock, which can grow in value over the long run.
2. For every additional share you own, you get an additional quarterly dividend.
Over time, this leads to a lot more money.
This Isn’t Limited to McDonald’s or US Stocks
Let’s look at a few other examples.
Say, 50 years ago, you invested $1,000 in the S&P 500. So did your neighbor. We’ll call him “Jim.”
Jim didn’t reinvest his dividends. But he still earned an annual return of 2.3%.
But you were smarter. You reinvested your dividends every quarter. So you earned an annual return of 5.3%. That’s more than twice as much as Jim earned.
This strategy is universally effective. You’ll make a lot more by reinvesting your dividends in any market.
On average, people who invested in one of the eight major stock markets—without reinvesting their dividends—earned 4.3% annually.
Meanwhile, those who reinvested their dividends earned 7.1% annually.
Shielding Your Portfolio from the Coming Recession
You can’t fight the math.
If you’re not reinvesting your dividends, you’d better have a solid reason why. Otherwise it’s like dropping $100 bills on the sidewalk. Just waste.
I think dividend reinvestment is a good idea for all investors—and at every point in the market cycle. That’s especially true when you own safe and stable stocks.
These stocks tend to do well no matter what’s happening in the economy or the markets. So when the next recession hits—something I expect in the not-so-distant future—and the broader market suffers, you will still own quality businesses that will make it through.
Plus, if you’re reinvesting your dividends, you’re getting more of a good thing, possibly at better prices. And you’re taking advantage of the magic of compound interest.
MCD inside day after ATH and 200.00 figDespite the market fluctuation, MCD is trading at its all time high level, which is quite in-play as a super relative strength pick!
Here we got this inside day after all time high before the 200.00 fig that had been tested once.
2 choices out there:
1. buy the inside day breakout
2. buy the 200.00 fig breakout
In this case, I'll prefer the 2nd one as there might still be huge size at the fig spot,
not really want to buy before the fig broken!
Well, so this trade will be a "buy at all time high" trade lol.
Let's see how it goes yo!
$MCD IS BIG MAC'S, BIG MOVE OVER.?It seems that the explosive move in MCD may have come to a end, after a initial pop on earnings, selling ensued quickly as investors banked sizable profits gained. We would assume that the stock was used as a quick trade lately rather than a investment given the sharp loss in momentum. Strong support exists at $190 and a possible back-test would be a positive long term buy signal.
McDonald's (MCD)MCD has released better than expected 4° quarter results. Foreign currency movements will likely be more of a problem in 2019 than in 2018. This top quality company equity's has a low Beta (0.80) could be suitable in a price swing market's. Our estimate for the earning per share in 2019 are between 8.15 and 8.30 dollars.
Total debt: 31.8 bilions $
Total profit 2018: 6.20 bilions $
Mcdonalds Short? Hey everyone, this is my first post and im still fairly new (2-3 months in) but heres my two cents.
As you can see, mcdonalds is quite a slow mover, however; I also believe that because of the apparent double top/ shoulder forming, we could potentially see a peak as high as the area I have shadowed (at best case for bulls, a third retest of the resistance to form a triple top). The technical analysis, along with an overall slowing-down of popularity amongst fast-food, shows if this move plays through mcdonalds could easily fall to the previous support as indicated.
Let me know what you think.