What the Options Market Tells Us About McDonald's

Loading...
Loading...

Whales with a lot of money to spend have taken a noticeably bearish stance on McDonald's.

Looking at options history for McDonald's MCD we detected 8 trades.

If we consider the specifics of each trade, it is accurate to state that 25% of the investors opened trades with bullish expectations and 62% with bearish.

From the overall spotted trades, 3 are puts, for a total amount of $114,960 and 5, calls, for a total amount of $204,260.

Expected Price Movements

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $230.0 to $265.0 for McDonald's over the recent three months.

Analyzing Volume & Open Interest

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for McDonald's's options for a given strike price.

Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of McDonald's's whale activity within a strike price range from $230.0 to $265.0 in the last 30 days.

McDonald's Call and Put Volume: 30-Day Overview

Biggest Options Spotted:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
MCD CALL TRADE BEARISH 09/20/24 $11.15 $11.1 $11.1 $250.00 $55.5K 275 55
MCD CALL SWEEP BEARISH 08/16/24 $7.0 $6.9 $6.9 $255.00 $52.4K 48 167
MCD PUT SWEEP BULLISH 06/20/25 $9.05 $8.4 $8.6 $230.00 $48.1K 370 56
MCD CALL TRADE NEUTRAL 12/20/24 $9.4 $8.6 $8.95 $265.00 $44.7K 94 0
MCD PUT TRADE BEARISH 01/17/25 $16.0 $15.95 $16.0 $260.00 $40.0K 1.0K 25

About McDonald's

McDonald's is the largest restaurant owner-operator in the world, with 2023 system sales of $130 billion across nearly than 42,000 stores and 115 markets. McDonald's pioneered the franchise model, building its footprint through partnerships with independent restaurant franchisees and master franchise partners around the globe. The firm earns roughly 60% of its revenue from franchise royalty fees and lease payments, with most of the remainder coming from company-operated stores across its three core segments: the United States, internationally operated markets, and international developmental/licensed markets.

After a thorough review of the options trading surrounding McDonald's, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Current Position of McDonald's

  • Currently trading with a volume of 924,837, the MCD's price is down by -0.92%, now at $251.19.
  • RSI readings suggest the stock is currently may be oversold.
  • Anticipated earnings release is in 57 days.

Expert Opinions on McDonald's

In the last month, 5 experts released ratings on this stock with an average target price of $310.0.

  • Consistent in their evaluation, an analyst from JP Morgan keeps a Overweight rating on McDonald's with a target price of $290.
  • An analyst from TD Cowen downgraded its action to Buy with a price target of $305.
  • Consistent in their evaluation, an analyst from Guggenheim keeps a Buy rating on McDonald's with a target price of $315.
  • An analyst from BMO Capital has decided to maintain their Outperform rating on McDonald's, which currently sits at a price target of $330.
  • Consistent in their evaluation, an analyst from Keybanc keeps a Overweight rating on McDonald's with a target price of $310.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for McDonald's, Benzinga Pro gives you real-time options trades alerts.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date of Trade
ticker
Put/Call
Strike Price
DTE
Sentiment
Posted In: OptionsMarketsBZI-UOA
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...