McDonald's Options Traders Betting On Stock Falling By Friday

McDonald's Corporation MCD shares edged higher on Monday, as the company reported quarterly earnings on Tuesday.

The company reported global comparable sales increased 12.6%, and consolidated revenues increased 4% (8% in constant currencies).

"Our strong first quarter results demonstrate that our Accelerating the Arches strategy is working, as comparable sales grew 12.6% through a healthy balance of strategic menu price increases and positive traffic growth," said McDonald's President and CEO Chris Kempczinski

On CNBC’s "Options Action," Mike Khouw of Optimize Advisors said McDonald's traded at 3x average daily options volume on Monday, with puts slightly outpacing calls volume.

Options markets are implying a move of +/-2.5% by the end of the week.

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There were buyers of 3,200 of the April 28 weekly 280-puts at an average price of $0.51 per contract, Khouw mentioned.

The trader expects McDonald's stock to drop by the end of the week.

Private equity company Carlyle Group Inc CG reportedly intends to find new investors for its investment in McDonald's Chinese operations.

Price Action: McDonald's shares rose 0.4% on Monday and were up 0.80% to $295.54 in premarket trading on Tuesday.

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Posted In: EarningsNewsOptionsMarketsMediaTrading IdeasCNBCMike KhouwOptimize AdvisorsOptions Action
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