Trading Edge 2020 Portfolio -Trade #5- MCD - Call Debit Spread
Updated
Ticker: MCD
Position:
- Feb 14th Expiry
- Long 210 Strike call = 3.78 - Delta 0.92
- Short 212.50 Strike call = 1.90 - Delta 0.62
- Net cost = $1.88
- Break even at expiry = $211.88
- Max profit = $0.62 (33%)
- Run 5x contracts = $940
Profit/ Exit targets:
- Exit position if MCD closes below the 21 ema on the daily
- Max profit is target, you may wish to run 80% max value of spread as your exit ($2.376 GTC sell order for spread)
Rationale:
- MCD has bounced off the 21 ema
- MACD is signaling a potential bullish continuation on both daily and lower time frames (4hr, 1hr etc.)
- MCD is within 4% of prior highs
- Moving averages are all stacked bullishly
- Appears to be in a solid uptrend, looking for some near-term trend continuation
-TradingEdge
Position:
- Feb 14th Expiry
- Long 210 Strike call = 3.78 - Delta 0.92
- Short 212.50 Strike call = 1.90 - Delta 0.62
- Net cost = $1.88
- Break even at expiry = $211.88
- Max profit = $0.62 (33%)
- Run 5x contracts = $940
Profit/ Exit targets:
- Exit position if MCD closes below the 21 ema on the daily
- Max profit is target, you may wish to run 80% max value of spread as your exit ($2.376 GTC sell order for spread)
Rationale:
- MCD has bounced off the 21 ema
- MACD is signaling a potential bullish continuation on both daily and lower time frames (4hr, 1hr etc.)
- MCD is within 4% of prior highs
- Moving averages are all stacked bullishly
- Appears to be in a solid uptrend, looking for some near-term trend continuation
-TradingEdge
Note
Updated entry prices are in the spreadsheet, unable to get set at outlined prices, the cost of spread was $1.98Long 210 = 5.70
Short 212.50 = 3.72
Trade closed manually
Exited tradefor $2.40
Sold long 210 = $7.25
Bought to close short 212.50 = $4.85
Net position = $2.40 for the spread
21% Profit
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