Check Out What Whales Are Doing With MCD

Check Out What Whales Are Doing With MCD

Someone with a lot of money to spend has taken a bearish stance on McDonald's MCD.

And retail traders should know.

We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.

Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with MCD, it often means somebody knows something is about to happen.

So how do we know what this whale just did?

Today, Benzinga's options scanner spotted 16 uncommon options trades for McDonald's.

This isn't normal.

The overall sentiment of these big-money traders is split between 43% bullish and 56%, bearish.

Out of all of the special options we uncovered, 10 are puts, for a total amount of $845,746, and 6 are calls, for a total amount of $4,094,285.

What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $170.0 to $280.0 for McDonald's over the last 3 months.

Volume & Open Interest Development

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 $170.0 to $280.0 in the last 30 days.

McDonald's Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Strike Price Total Trade Price Open Interest Volume
MCD CALL TRADE BEARISH 11/18/22 $260.00 $3.2M 6.9K 4.4K
MCD CALL TRADE BEARISH 12/16/22 $280.00 $612.5K 3.4K 3.9K
MCD PUT SWEEP NEUTRAL 03/17/23 $260.00 $386.0K 1.5K 656
MCD PUT SWEEP BEARISH 01/20/23 $270.00 $79.3K 3.5K 343
MCD CALL SWEEP NEUTRAL 01/20/23 $260.00 $73.4K 7.9K 42

Symbol PUT/CALL Trade Type Sentiment Exp. Date Strike Price Total Trade Price Open Interest Volume
MCD CALL TRADE BEARISH 11/18/22 $260.00 $3.2M 6.9K 4.4K
MCD CALL TRADE BEARISH 12/16/22 $280.00 $612.5K 3.4K 3.9K
MCD PUT SWEEP NEUTRAL 03/17/23 $260.00 $386.0K 1.5K 656
MCD PUT SWEEP BEARISH 01/20/23 $270.00 $79.3K 3.5K 343
MCD CALL SWEEP NEUTRAL 01/20/23 $260.00 $73.4K 7.9K 42

Where Is McDonald's Standing Right Now?

  • With a volume of 2,027,580, the price of MCD is up 2.11% at $273.49.
  • RSI indicators hint that the underlying stock may be approaching overbought.
  • Next earnings are expected to be released in 71 days.

What The Experts Say On McDonald's:

  • Barclays has decided to maintain their Overweight rating on McDonald's, which currently sits at a price target of $270.
  • Cowen & Co. has decided to maintain their Outperform rating on McDonald's, which currently sits at a price target of $293.
  • Barclays has decided to maintain their Overweight rating on McDonald's, which currently sits at a price target of $295.
  • RBC Capital has decided to maintain their Outperform rating on McDonald's, which currently sits at a price target of $295.
  • Keybanc has decided to maintain their Overweight rating on McDonald's, which currently sits at a price target of $295.

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.

Posted In: BZI-UOAOptionsMarkets