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 62% leaning bullish and 25% bearish. Among these notable options, 3 are puts, totaling $128,067, and 5 are calls, amounting to $643,055.
Expected Price Movements
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $250.0 to $300.0 for McDonald's over the recent three months.
Insights into Volume & Open Interest
In today's trading context, the average open interest for options of McDonald's stands at 855.14, with a total volume reaching 1,243.00. 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 $250.0 to $300.0, throughout the last 30 days.
McDonald's Option Activity Analysis: Last 30 Days
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| MCD | CALL | TRADE | BULLISH | 12/20/24 | $10.35 | $9.85 | $10.29 | $290.00 | $514.5K | 32 | 500 |
| MCD | PUT | TRADE | BEARISH | 09/20/24 | $3.1 | $2.99 | $3.07 | $250.00 | $52.4K | 749 | 285 |
| MCD | PUT | TRADE | NEUTRAL | 05/24/24 | $22.6 | $18.05 | $20.05 | $295.00 | $42.1K | 0 | 0 |
| MCD | CALL | TRADE | BULLISH | 12/20/24 | $6.9 | $6.1 | $6.75 | $300.00 | $33.7K | 37 | 50 |
| MCD | PUT | TRADE | BULLISH | 05/17/24 | $3.5 | $3.45 | $3.45 | $275.00 | $33.4K | 1.2K | 78 |
About McDonald's
McDonald's is the largest restaurant owner-operator in the world, with 2023 system sales of $130 billion across nearly than 42,000 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 roughly 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.
Having examined the options trading patterns of McDonald's, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
McDonald's's Current Market Status
- Currently trading with a volume of 1,918,385, the MCD's price is down by -0.18%, now at $273.94.
- RSI readings suggest the stock is currently may be approaching overbought.
- Anticipated earnings release is in 84 days.
Professional Analyst Ratings for McDonald's
In the last month, 5 experts released ratings on this stock with an average target price of $306.0.
- An analyst from TD Cowen has revised its rating downward to Buy, adjusting the price target to $305.
- Maintaining their stance, an analyst from Baird continues to hold a Outperform rating for McDonald's, targeting a price of $300.
- Maintaining their stance, an analyst from UBS continues to hold a Buy rating for McDonald's, targeting a price of $335.
- An analyst from Wedbush persists with their Outperform rating on McDonald's, maintaining a target price of $300.
- Maintaining their stance, an analyst from JP Morgan continues to hold a Overweight rating for McDonald's, targeting a price of $290.
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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