Dan Nathan's McDonald's Corporation Trade

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CNBC Options Action's
Dan Nathan suggested on the show on Friday an options strategy for traders that have a long stock position in
McDonald's CorporationMCD
. He explained that call options made approximately two thirds of the options volume on Friday as traders are positioning for a big move that could happen after the company announces a turnaround plan on Monday. Nathan thinks that this is a good opportunity to own the stock and collect some yield. Nathan wants to sell the May 8 weekly 100 calls for $1.10 and he also wants to sell the May 8 weekly 95 put for $0.90. This structure offers a protection of $2 on the downside and if it trades higher the profits are capped at $102. Below $95 he would have to add to his position. Mike Khouw commented that this strategy makes a lot of sense and Carter Worth believes that the stock is going higher.
Posted In: CNBCMediaCarter WorthConsumer DiscretionaryDan NathanMike KhouwOptions ActionRestaurants
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