Trade Idea - Naked Put on MCD

Disclaimer: The trades discussed in this blog reflect the author's personal strategies and decisions. These are not financial advice and should not be considered recommendations to buy, sell, or hold any financial instruments. The author is not a licensed financial advisor. Options trading carries significant risk, and readers should perform their own research or consult a qualified financial advisor before making any investment decisions. Past performance does not guarantee future results.

McDonald's (MCD) has sold off sharply from the $340+ highs it printed in February and is now trading around $307, with the RSI deep in oversold territory and the IV rank above 85%. That's a setup I like for selling premium.

The Trade

Here's the trade:

• Sell 1x MCD 24 Apr 2026 $300 Put @ $1.10
• Breakeven: $298.90

For reference, here is the current price chart of MCD:

The stock has shed roughly 10% from its February highs and the lower Bollinger Band has been tagged. RSI is sitting around 22, which is about as oversold as you'll see on a daily chart. My short strike at $300 is a clean psychological level, sitting comfortably below the current price and below recent support.

This is a quick one... expiration is next week. The idea is simple: IV is elevated, and I want to capture a fast chunk of premium before it decays. With only 8 days to expiration, theta is working aggressively in my favor.

McDonald's is about as evergreen as a company gets. If for some reason the stock collapses through $300 in the next eight days and I end up assigned, I would own shares of one of the most durable franchises on the planet at a very decent cost. Not the plan, but not the end of the world either, I could wheel it or simply hold.

As always, I have logged the trade in my trade log.