by Ian Harvey
October 27, 2017
McDonald's Corporation (NYSE:MCD)
Here is an overview of McDonald's Corporation (NYSE:MCD) winning options put trade after reporting earnings. This options trade was recommended, as a consideration, on Monday, October 23, 2017 in the article Earnings Predictions for the Week Beginning October 23, 2017”; producing great profits within a couple of days of executing the trade!
The burger chain McDonald's Corporation (NYSE:MCD) reports Q3 earnings on Tuesday, before the market opens, to grow EPS by 7% to $1.74, down from prior double-digit gains, on revenue of $5.688 billion, an 11% drop. Cheap drinks and premium burgers likely helped lift results during the quarter, RBC said. Delivery via UberEats remains a way for the chain to attract new customers, but data for the company's sales trends during the quarter has been conflicted.
Option trade to consider: Buy the MCD DEC 15 2017 165.000 PUT at approximately $3.70.
McDonald's impressed again in Q3 with U.S. comparable sales growth of over 4% during a quarter that saw high population areas of Florida and Texas come to a standstill during the major hurricanes that struck.
The solid mark could indicate that some of McDonald's U.S. promotions are generating repeat traffic. The extra sales are needed by the restaurant operator due to extra pressure from higher labor wages and elevated commodity costs. In McDonald's 8-K, the restaurant chain disclosed that its Q3 U.S. restaurant margin fell to 15.5% from 16.9% a year ago.
However, after the dust settled, questions were being asked that could still affect the restaurant's future in a big way. Namely, knowing if the move away from company-owned restaurants and toward more franchisee-owned units is paying off?
And as well, U.S. stocks had their worst day in two months on Wednesday, which saw the Dow Jones Industrial Average fall 112.3 points to close at 23,329.46, marking its biggest one-day fall since Sept. 5.
At the time of the recommendation, Monday morning, MCD stock price was sitting at about $166.00, but fell during the day.
Tuesday morning, MCD shares were sitting at roughly $165.42.
Wednesday, saw MCD as low as $163.00.
So, for those traders who managed to execute this trade recommended by Stock Options Made Easy; a nice tidy potential profit of 35% within a couple of days.
ACTION TO TAKE…….
As you would have by now realized, many of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but during earnings season this strategy has been very profitable.
Our approach is to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.Our proven track record says it all!!
Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.
What To Do Now…….
If you interested in being part of this profitable action just click here……