Your Alpha Algorithm portfolio continued its winning ways over the past five trading days.
As you’ll see in the Portfolio Update section below, this week you are locking in an 83% option gain, as well four double-digit-percentage gainers ranging between 10% and 25%.
This week, the Alpha Algorithm generated yet another eight-strategy stock known throughout the world for its “Golden Arches.”
Founded in 1940 and based in Oak Brook, Illinois, McDonald’s Corporation (MCD) operates and franchises McDonald’s stores across the globe. At the close of 2015, it operated 36,899 restaurants, including 31,230 franchised restaurants and 5,669 company-operated restaurants.
McDonald’s Corporation (MCD) versus the S&P 500 year to date.
Eight Top Investment Strategies Betting on McDonald’s Corp. (MCD)
- Insider Buying
The company’s outstanding shares have been reduced by at least 5% in the previous year through share repurchases
- Fundamental Strength
It is a top U.S. stock based on fundamentals measured by book value, cash flow, sales and dividends.
- Goldman Sachs’ Active Beta
The stock is selected according to four factors — value, quality, momentum and low volatility. These, in turn, are based on criteria including book value, sales and cash flow scaled by share price, profit/assets or return on equity (ROE), risk-adjusted returns and daily standard deviation of returns.
- Low-Interest-Rate Sensitivity
This is a large-cap U.S. stock selected for its low volatility and positive price performance in a rising-interest-rate environment.
- Dividend Aristocrat
The stock is among those that have increased dividends for at least 25 consecutive years.
- High-Quality Stock
The stock exhibits positive fundamentals, including high return on equity, stable year-over-year earnings growth and low financial leverage.
- Capital Strength
The stock is part of a strategy that seeks to outperform the market by selecting companies based on the strength of their balance sheets, long-term debt ratios and return on assets (ROA).
- Value Tilt
Selected using a multi-factor modeling approach, the company is a value stock designed to enhance portfolio risk/return characteristics.
Buy McDonald’s Corp. (MCD) at market today.
Place your initial stop at $134.00.
With the stock technically overbought over the short term, I am holding off on recommending options this week.
With your Applied Materials (AMAT) July $39.00 calls (AMAT170721C00039000) up 83.54%, sell half of your options at this level to lock in these terrific gains.
Raise your stop in Apple Inc. (AAPL) to $149.00 to lock in a 25% gain in the stock.
Raise your stop in Home Depot Inc. (HD) to $156.50 to lock in a 24% gain.
Raise your stop in Alphabet Inc. (GOOGL) to $922.50 to lock in a 15% gain.
Raise your stop in Amazon.com (AMZN) to $926.25 to lock in a 10% gain.
Nicholas A. Vardy