Deep-pocketed investors have adopted a bullish 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 8 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 50% leaning bullish and 50% bearish. Among these notable options, 3 are puts, totaling $1,600,295, and 5 are calls, amounting to $346,190.
Projected Price Targets
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $265.0 to $310.0 for McDonald's over the recent three months.
Volume & Open Interest Development
In today's trading context, the average open interest for options of McDonald's stands at 1492.67, with a total volume reaching 2,287.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in McDonald's, situated within the strike price corridor from $265.0 to $310.0, throughout the last 30 days.
McDonald's Option Activity Analysis: Last 30 Days
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| MCD | PUT | TRADE | BULLISH | 01/17/25 | $280.00 | $1.4M | 1.0K | 1.0K |
| MCD | CALL | SWEEP | BULLISH | 09/20/24 | $310.00 | $145.5K | 565 | 300 |
| MCD | PUT | SWEEP | BEARISH | 01/19/24 | $290.00 | $106.2K | 892 | 392 |
| MCD | CALL | TRADE | BEARISH | 09/20/24 | $310.00 | $96.9K | 565 | 400 |
| MCD | PUT | SWEEP | BULLISH | 01/17/25 | $265.00 | $80.0K | 234 | 15 |
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.
Following our analysis of the options activities associated with McDonald's, we pivot to a closer look at the company's own performance.
Where Is McDonald's Standing Right Now?
- With a trading volume of 1,318,229, the price of MCD is up by 0.06%, reaching $286.95.
- Current RSI values indicate that the stock is may be overbought.
- Next earnings report is scheduled for 53 days from now.
Professional Analyst Ratings for McDonald's
A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $315.0.
- Maintaining their stance, an analyst from Stifel continues to hold a Hold rating for McDonald's, targeting a price of $285.
- An analyst from RBC Capital downgraded its action to Outperform with a price target of $315.
- Consistent in their evaluation, an analyst from BMO Capital keeps a Outperform rating on McDonald's with a target price of $335.
- Reflecting concerns, an analyst from Oppenheimer lowers its rating to Outperform with a new price target of $315.
- Consistent in their evaluation, an analyst from TD Cowen keeps a Outperform rating on McDonald's with a target price of $325.
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.
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