McDonald's Stock Spread Offers Fast Return, But Be Cautious

Selling McDonald's (MCD) stock against its industry group can be a lucrative strategy, according to Investor's Business Daily. This spread involves buying MCD and selling an equal amount of the XRT ETF, which tracks the S&P 1500 Index. With a significant difference in price movements between these two assets, investors can potentially reap substantial returns.

The current spread price is around $3.65, with MCD trading at around $250 and XRT at around $246. This means that for every dollar invested in the spread, there is a potential return of 1.47% per day. However, it's essential to note that this strategy involves taking on additional risk, as both assets can move against each other.

Investors should carefully consider their individual financial situations and investment goals before entering into such a spread. This strategy is not suitable for all investors and may result in significant losses if the market moves against it.