Buy Alert: September 13, 2012

Marcus Haber | September 13, 2012

Buy Alert: September 13, 2012

Trade Details

Buy McDonald’s October $95 Calls for $0.46 or better

Why?

McDonald’s has been in a long term uptrend for months now and it doesn’t matter what the market does. If the market is down, MCD is up. When the market is up, then again, MCD is up.

McDonald’s maintains the leading market position in virtually every country in which it operates with the exception of China. Yet even with this coverage, global expansion opportunities still exist.

Premium products such as the Angus Third Pounder hamburger and the McCafe specialty coffee menu have been well received over the last few months.

Also, McDonald’s recent decision to bump up their dividend should start attracting income hungry investors as well.

For all these reasons, let’s jump into some short term call options as this market uptrend should continue. Watch for a double top around the $100 per share level, the stock last hit that level in early 2012.

I think the stock could reach $100 in no time, giving our options a big bump in value!