The Only Maybe
Of all the earnings grenades on the board, McDonald's was the one where I thought, maybe. McDonald's usually doesn't move much on earnings, and a quiet stock is what this setup wants. I checked the latest reports, and they usually came in at about two percent.
A 2.8% Window
The break-even window was only 2.8 percent to the upside and 2.8 percent to the downside. That felt too small. I checked the December monthly as well, and its window was also very small. Not enough room, so I passed.
Two Grenades at Once
The report also landed in the week of the election. An earnings grenade plus an election grenade, two grenades at the same time: I was not so sure that is a good idea. And with a squeeze to the upside already running, I said no.
Not Trading Is a Position
It is nice sometimes not to trade. I had a look at Booking and CVS too, and none of those grenades would have worked. McDonald's closed 6.5 percent higher on report day, more than twice the window. I am quite happy we did not do it.
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