Consumer Cyclical
MCD
McDonald's Corporation
Conservative income from McDonald's (MCD) with covered calls and cash secured puts. Dividend aristocrat with steady premium.
Monthly Premium0.8-1.5%
Annualized Return10-18%
Stock Price$290-310
IV RankLow (20-35)
Options LiquidityGood
Dividend Yield2.2%
Why MCD for Covered Calls & Cash Secured Puts?
MCD is a dividend aristocrat with decades of dividend growth. Low volatility means lower premium but very stable income. Perfect for conservative retirees.
Example Covered Call Trade
MCDCovered Call
Strike Price$310 (4% OTM)
Expiration30 days
Premium$3.20 per share
Return If Flat1.1% ($320)
Return If Called5.0% ($1,500) + dividend
Keep Probability75% keep shares
Recommended Strategy for MCD
Sell calls 3-5% OTM for conservative income to supplement the dividend. MCD is ideal for those prioritizing stability over returns.
Risks to Consider
- Lower premium potential
- Health trend concerns
- Franchisee relations
- International currency exposure
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