Speaking on CNBC's "Options Action", Dan Nathan suggested that investors should consider a bearish options strategy in McDonald's Corporation MCD ahead of earnings.
The company is going to report earnings on Tuesday and Nathan thinks it would be a good idea to buy the July 152.50/149 put spread for $1 in the name. The trade breaks even at $151.50 or 1.57 percent below the current stock price and it can maximally make a profit of $2.50. The stock has to drop at least 3.2 percent by the end of the week for the trade to reach its maximum profit.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.