r/wallstreetbets
I'm going to get so much beef for this (MCD)
MCD presents a solid call option setup due to low IV, depressed valuation, and capitulating public sentiment, expecting a 20%+ move.
- Low implied volatility (~25%) combined with an expected 20%+ price move makes it an ideal setup for call options.
- The stock is trading at a historically low valuation base with stable fundamentals, setting up a classic valuation reversion.
- Public sentiment has reached a point of fear and capitulation, which historically acts as a strong contrarian bullish signal.
Ok fellas, sometimes the best ones are the most boring. Hear me out.
Today, we have a great setup for the big D. And not the kind your wifes boyfriend likes. Im talking about the Mac Daddy of all boring long setups.
No need to explain what this company does, but I will gently bring to your attention this classic low IV valution reversion setup.
This is a classic repeat valuation reversion trade that no one is posting about. It's boring but solid. low valuation + negative sentiment + stable fundamentals = solid call options setup.
TLDR
\- Low IV \~25% with 20%+ move incoming = call options
\- Coming off a low valuation base (see below)
\- Capitulating emotion (see below)
\- Historically solid
Public engagement is fearful\/capitulating
80% of the time it works 100% of the time
https://preview.redd.it/yp7ddmts4h6h1.png?width=1376&format=png&auto=webp&s=34e78722c71bcdf3a28038b51a704e452add8e35
wait why was it removed so fast
I ain't reading all that. I am happy for you tho, or sorry that it happened