Dan Nathan Analyses McDonald's Ahead Of Earnings

Dan Nathan spoke on CNBC's Options Action about McDonald's Corporation MCD. The company is going to report earnings on Friday and the options market is implying a 2.8 percent move in either direction on the event. The stock moved 3.5 percent on average over the last four quarters.

Nathan added that McDonald's is trading at a critical support level and he thinks that the company might guide down due to strong U.S. dollar. If the stock trades to $104 on a weak guidance, Nathan would be a buyer, because he sees that price level as a good entry point.