CLOSING the 6/7 Options Action Trade - $MCD - scott

20 july - was touch and go there at the beginning but if you stuck it out this put sale expired today at max profit. if you can keep the attitude of "i wouldnt mind owning the stock if it goes lower" when it ACTUALLY goes lower then selling puts is almost always a win-win strategy.

-----------------------------------------------------------------------------------------------------------------------

29jun - was kind of scary for a bit there, but youre up about 40% if you are still holding this..Puts going for .85ish now with stock near 88.50. like i said below, i like put sales but prefer to do them with a bigger return,,ie higher IV stocks.

click-->https://twitter.com/Mark_Lexus to follow on twitter

-----------------------------------------------------------------------------------------------------------------------------

7 jun - scott has a trade on MCD on tonights Options action segment.

Sell the July 87.50 put for $1.30

Selling puts is good way to enter into stocks at a lower cost basis. not mentioned is that you need to set aside enough buying power / margin to be able to actually buy the stock at $87.50 if you get "put the stock" at opex.. so figure $8750 for each put you sell.. so if that is a good enough of a return till july opex...earning $130 on $8750 then go for it.. seems like a bit low vs some other strategies and other stocks.. also if the stock drops that low, people always seem to change their tune and dont want to own the stock at that level.
    if you have a bullish thesis till july opex, i would make this a  risk reversal instead of just a put sale.. with same margin needed.. such as sell the 87.50 put and buy the july 90call.. for about zero cost.

scott's on-air trades in a google docs spreadsheet