New Trade : MCD

Stock / Symbol: McDonalds / MCD

Option Strategy: [private_monthly]calendar spread[/private_monthly]
Price at trade post: $87.60

Reasoning: Statistically, between now and Aug expiration, MCD should trade between [private_monthly]84 and 92. Given these odds, we're going for a non-directional trade with a call calendar spread. With delta of .55 on the short calls and a delta of .54 on the long calls, this is a delta neutral trade. Odds of success on this trade are 70% to the downside and 75% to the upside. [/private_monthly]

Trade Details:
BTO 3 MCD Jan13 87.5 calls
STO -3 MCD Aug12 87.5 calls
for a max net debit of $2.15 per contract (bid @ 2.05 / ask @ 2.15, day order, limit order)

Cost/Proceeds $645
Option Requirement $0.00
Total Requirements $645
Estimated Commission $12.95

Max Risk: $645
Max Reward: $450 or 69% by Aug 17
Profit Range: $84 to $91.50 by Aug 17
Max Profit at: $87.5
Suggested upside stop: $92.30
Suggested downside stop: $83.90

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