MCD Iron Condor — Nov 20, 2026
Trade Setup
Current Stock Price
$335.50
Entry Price
$335.50
Target Price
$167.75
Stop Loss
$671.00
Expiration
Nov 20, 2026
Suggested Contracts
1
Strike Details
Sell 225P / Buy 215P / Sell 250C / Buy 260C
Risk / Reward
Max Loss
$664.50
Max Profit
$335.50
Analysis
MCD (McDonald's Corporation Common Stock) presents a iron condor opportunity with very elevated implied volatility. IV Rank 74. IV 2563.0% trades 277.0pp above 30-day HV (2286.0%). This setup favors net premium sellers.
Sell the $225 put and the $250 call (both ~15-30 delta), each protected by a long wing. The position profits if MCD closes between the breakevens at expiration. Underlying ~$235.23, 39 DTE. Max profit $336 per contract, max loss $665, 50.5% return on risk, 56% POP. Breakevens at $221.65 and $253.35.
Management: take profit at ~50% of max profit ($168). Cut at 2x credit ($671 loss). If short strike is breached with > 14 DTE, consider rolling out for a credit. Close before expiration week to avoid gamma risk.
Setup Instructions
Underlying: MCD @ ~$235.23 Expiration: Nov 20, 2026 (39 DTE) Net credit (entry): ~$335.50 per spread Legs:
- Sell MCD Nov 20, 2026 $225 Put (delta -0.26, mid $2.87)
- Buy MCD Nov 20, 2026 $215 Put (delta -0.11, mid $1.05)
- Sell MCD Nov 20, 2026 $250 Call (delta 0.25, mid $2.74)
- Buy MCD Nov 20, 2026 $260 Call (delta 0.13, mid $1.20)
Use limit orders at the mid or slightly worse. Verify bid-ask spread (currently ~4.5% of mid) before sending.
Management Plan
Take profit at 50% of max profit ($168). Cut loss if position reaches 2x credit received ($671 loss). Roll if tested with > 14 DTE remaining.