I've been looking at some seasonality stuff this morning and this jumped off my charts.
Since 1994, MCD 4th quarter has gained 10% or more 16 times. 5 times it took until all of Q1 to hit the mark and twice it took another Quarter. Only once did it not hit-2008.
Buying an ITM call and selling one 10% higher than current stock price would have net a 20 bagger while being in the market a fraction of the time. 10% bump returns 100% +/- on the option trade.
An outright purchase of MCD in 1994 would have also resulted in similar gains but with a 69% drawdown period over 4 years time. How many still hold through that is the question.
I'm trying to do the math of compounding your wins. I.E. first year 5K gain on 2.5 risked, next year 10K on 5, next year 20K on 10, 30 on 15 risk etc. I'm getting woozy.
I'll try to find other anomalies at different calendar period when I recover-LOL
Since 1994, MCD 4th quarter has gained 10% or more 16 times. 5 times it took until all of Q1 to hit the mark and twice it took another Quarter. Only once did it not hit-2008.
Buying an ITM call and selling one 10% higher than current stock price would have net a 20 bagger while being in the market a fraction of the time. 10% bump returns 100% +/- on the option trade.
An outright purchase of MCD in 1994 would have also resulted in similar gains but with a 69% drawdown period over 4 years time. How many still hold through that is the question.
I'm trying to do the math of compounding your wins. I.E. first year 5K gain on 2.5 risked, next year 10K on 5, next year 20K on 10, 30 on 15 risk etc. I'm getting woozy.
I'll try to find other anomalies at different calendar period when I recover-LOL