Deep-pocketed investors have adopted a bearish approach towards McDonald's MCD, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in MCD usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 11 extraordinary options activities for McDonald's. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 27% leaning bullish and 72% bearish. Among these notable options, 2 are puts, totaling $56,237, and 9 are calls, amounting to $886,767.
Expected Price Movements
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $225.0 to $290.0 for McDonald's during the past quarter.
Analyzing Volume & Open Interest
Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for McDonald's's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across McDonald's's significant trades, within a strike price range of $225.0 to $290.0, over the past month.
McDonald's Option Volume And Open Interest Over Last 30 Days
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| MCD | CALL | SWEEP | BEARISH | 03/15/24 | $290.00 | $305.0K | 752 | 1.6K |
| MCD | CALL | TRADE | BULLISH | 03/15/24 | $290.00 | $178.5K | 752 | 683 |
| MCD | CALL | SWEEP | BEARISH | 03/15/24 | $290.00 | $177.3K | 752 | 1.1K |
| MCD | CALL | SWEEP | BULLISH | 03/15/24 | $290.00 | $51.6K | 752 | 200 |
| MCD | CALL | TRADE | BEARISH | 01/17/25 | $285.00 | $41.2K | 250 | 18 |
About McDonald's
McDonald's is the largest restaurant owner-operator in the world, with 2022 system sales of $116 billion (by our estimates) across more than 40,000 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 nearly 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.
McDonald's's Current Market Status
- With a trading volume of 403,341, the price of MCD is up by 0.09%, reaching $282.18.
- Current RSI values indicate that the stock is may be overbought.
- Next earnings report is scheduled for 67 days from now.
What The Experts Say On McDonald's
5 market experts have recently issued ratings for this stock, with a consensus target price of $303.6.
- In a positive move, an analyst from DZ Bank has upgraded their rating to Buy and adjusted the price target to $300.
- An analyst from Stephens & Co. has decided to maintain their Overweight rating on McDonald's, which currently sits at a price target of $300.
- In a cautious move, an analyst from RBC Capital downgraded its rating to Outperform, setting a price target of $315.
- An analyst from BMO Capital persists with their Outperform rating on McDonald's, maintaining a target price of $325.
- An analyst from JP Morgan has decided to maintain their Overweight rating on McDonald's, which currently sits at a price target of $278.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
