Two Advantages of Using Options

During their recent episode of the Value Options Letter and Acquirers Podcast, Travis and Carlisle discussed Get Paid While You Wait. Here’s an excerpt from the episode:

[Tobias] So that’s just a little illustration of what happens with these positions. There’s always, whenever we put a position on, there’s always two outcomes. You get put the stock at a price that you want to own it or the option expires worthless and you collect the premium.

If you get put the stock, then it opens up new opportunities for new strategies. And one of them is the wheel. And that’s where you either just do the same trade again, sell another put to get further into the stock or sell a call because you’re already long with stocks that turned into a covered call.

What do you think about the likely trajectory of McDonald’s in the shorter term? Do you have any view there?