Alon Rosin's McDonald's Trade

Speaking on Bloomberg Markets, Alon Rosin of Oppenheimer suggested that investors should consider a bearish options strategy in McDonald's Corporation MCD as a way to hedge a long position or as a bet for a downside move.

Rosin thinks it would be a good idea to buy the November 155/145 put spread for $2. The trade breaks even at $153 or 2.55 percent below the current market price. It's going to reach its maximal profit of $8, if the stock drops to $145 or lower. Rosin added that McDonald's dropped below its 50 day moving average on Thursday, which has led the stock to lower levels in the past.