Stock Trader Larry

McDonald's: Looking a Bit Overvalued

Good analysis of MCD. If the general economy continues to decline from here, that will likely add additional downward pressure to MCD from here as well. From looking at the charts, it appears that this is a real possibility. MCD appears to have dropped into a new, lower channel last October and is now near the top (overbought area) of that channel. I agree about the long term for existing shareholders, it does appear like a good opportunity to be selling covered calls at this time. Nice job.