Tuesday, June 06, 2006

Buy MCD McDonalds

Trade

Buy/write on MCD McDonalds (fast food chain)
Buy the stock, sell the Sep 32.5 call

A conservative trade, selling the out month in-the-money call, based on overall market feel than anything else.

The long term chart of the overall market doesn't give me a warm fuzzy feeling. However, I believe a short term bounce is sooner rather than later. Because of my skepticism at the long term prospects, I haven't made any buys in my long term retirement accounts.

Current positions all longs:
ATK, EBAY*, SHLD, PGR*, WCG* and now MCD*
* denotes hedged positions, long stock, short calls

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