McDonald's Stock Broken Wing Butterfly Has Little Upside Risk

[The Option Specialist]( --------------------------------------------------------------- [McDonald's Stock Broken Wing Butterfly Has Little Upside Risk]( McDonald's stock recently broke below the 200-day moving average, but yesterday found support around 242.50. Here's an option strategy on McDonald's stock with very little risk on the upside and a healthy profit zone on the downside. The broken wing butterfly is similar to a regular butterfly option trade. The biggest difference is that rather than placing the "wings" an equal distance from the short strike price, there's a larger gap on a particular side. The asymmetry makes for less risk on one side and more risk on the opposite side. This isn't the first broken wing butterfly trade on McDonald's stock for this column. Another broken wing butterfly example presented itself in July and is also covered in the video above. In this case, we'll again use puts because the strikes will all be below the stock price. This helps to reduce assignment risk. Let's take a look at how a broken wing butterfly trade might be set up on MCD stock now: [More...]( SPONSORED CONTENT [Controversial Millionaire Trader, Jeff Clark, Says "I Only Trade ONE Stock & I NEVER Worry About..."]( [image]( The name of the ONE stock (ticker symbol and all) that has helped over 170,000 people discover how to gain their financial freedom... [Learn More.]( [Reflections: Inflation Sinks In - by David Sager]( The Sleeping Bear Has Awakened…and Monday christened the slide.. The steep downturn Monday, after five days of sliding, the indices set new lows. The Dow Jones Industrial Average led the way falling 329 points on Monday to close at 29260, and into Bear Territory. The index has fallen over significantly to give credence to entering ‘Bear Territory.’ The S&P 500 rested at a ‘new’ bottom at 3655. The Technology laden Nasdaq Composite followed suit settling at 10802. As the week continued, conditions worsened. 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