Investors with a lot of money to spend have taken a bullish stance on McDonald's MCD.
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with MCD, it often means somebody knows something is about to happen.
So how do we know what these investors just did?
Today, Benzinga's options scanner spotted 9 uncommon options trades for McDonald's.
This isn't normal.
The overall sentiment of these big-money traders is split between 44% bullish and 22%, bearish.
Out of all of the special options we uncovered, 5 are puts, for a total amount of $190,645, and 4 are calls, for a total amount of $194,050.
What's The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $220.0 to $300.0 for McDonald's over the last 3 months.
Volume & Open Interest Trends
In today's trading context, the average open interest for options of McDonald's stands at 704.14, with a total volume reaching 1,430.00. 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 $220.0 to $300.0, throughout the last 30 days.
McDonald's Option Activity Analysis: Last 30 Days
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| MCD | CALL | TRADE | BULLISH | 01/16/26 | $11.5 | $10.75 | $11.5 | $300.00 | $97.7K | 813 | 89 |
| MCD | PUT | TRADE | NEUTRAL | 06/28/24 | $36.55 | $31.55 | $33.95 | $290.00 | $71.2K | 0 | 0 |
| MCD | CALL | TRADE | BULLISH | 12/20/24 | $41.4 | $41.4 | $41.4 | $220.00 | $41.4K | 4 | 10 |
| MCD | PUT | TRADE | NEUTRAL | 06/21/24 | $5.9 | $5.7 | $5.81 | $260.00 | $34.8K | 3.1K | 321 |
| MCD | PUT | SWEEP | BULLISH | 06/14/24 | $4.45 | $4.3 | $4.3 | $257.50 | $32.2K | 599 | 174 |
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.
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.
Present Market Standing of McDonald's
- With a volume of 1,097,494, the price of MCD is down -0.62% at $254.63.
- RSI indicators hint that the underlying stock may be approaching oversold.
- Next earnings are expected to be released in 45 days.
What The Experts Say On McDonald's
3 market experts have recently issued ratings for this stock, with a consensus target price of $297.6666666666667.
- An analyst from B of A Securities persists with their Neutral rating on McDonald's, maintaining a target price of $288.
- In a cautious move, an analyst from TD Cowen downgraded its rating to Buy, setting a price target of $305.
- An analyst from JP Morgan has decided to maintain their Overweight rating on McDonald's, which currently sits at a price target of $300.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest McDonald's options trades with real-time alerts from Benzinga Pro.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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