Sell McDonald’s (NYSE: MCD) and Wendy’s (NYSE: WEN) Puts for Loss as Expiration Looms
Sell to close the February 15, 2019 put on McDonalds (NYSE: MCD) with a strike price of $180 at $2.20 or higher. Symbol (MCD190215P180)
Sell to close the February 15, 2019 put on Wendy’s Company (NYSE: WEN) with a strike price of $16.00 at $.07 or higher. Symbol (WEN190215P16)
I hate booking a loss but these puts expire soon and will lose their value rapidly. Almost immediately after purchase, both stocks rose on good sales from competitor Restaurant Brands International (NYSE: QSR). The pre-announcement of sales by QSR was unexpected. The company chose to do this in conjunction with a significant executive departure.
I still believe that aggressive marketing by QSR owned chain, Burger King, will impair sales at Wendy’s and McDonald’s. However, the calls expire soon and the stocks are now well above the strike prices.
I had hoped the stocks would take a breather after their big run but they continue to run higher. I suggest collecting any capital you can from these trades and consider rolling into later expiration date puts.