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 12 uncommon options trades for McDonald's.
This isn't normal.
The overall sentiment of these big-money traders is split between 41% bullish and 41%, bearish.
Out of all of the special options we uncovered, 7 are puts, for a total amount of $414,829, and 5 are calls, for a total amount of $222,267.
What's The Price Target?
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $200.0 and $270.0 for McDonald's, spanning the last three months.
Volume & Open Interest Development
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for McDonald's's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of McDonald's's whale trades within a strike price range from $200.0 to $270.0 in the last 30 days.
McDonald's Call and Put Volume: 30-Day Overview
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| MCD | PUT | SWEEP | NEUTRAL | 06/28/24 | $2.64 | $2.52 | $2.52 | $252.50 | $127.4K | 244 | 25 |
| MCD | PUT | SWEEP | BULLISH | 06/28/24 | $2.9 | $2.76 | $2.76 | $252.50 | $95.2K | 244 | 591 |
| MCD | PUT | SWEEP | BEARISH | 07/05/24 | $18.4 | $16.65 | $17.5 | $270.00 | $64.7K | 5 | 0 |
| MCD | CALL | TRADE | BULLISH | 12/20/24 | $56.5 | $55.25 | $56.5 | $200.00 | $56.5K | 17 | 0 |
| MCD | CALL | SWEEP | NEUTRAL | 01/17/25 | $18.0 | $16.8 | $17.82 | $250.00 | $55.2K | 686 | 8 |
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.
Where Is McDonald's Standing Right Now?
- With a volume of 547,274, the price of MCD is up 0.7% at $252.54.
- RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
- Next earnings are expected to be released in 35 days.
What Analysts Are Saying About McDonald's
4 market experts have recently issued ratings for this stock, with a consensus target price of $295.25.
- Consistent in their evaluation, an analyst from JP Morgan keeps a Overweight rating on McDonald's with a target price of $300.
- Reflecting concerns, an analyst from TD Cowen lowers its rating to Buy with a new price target of $305.
- An analyst from Goldman Sachs has revised its rating downward to Neutral, adjusting the price target to $288.
- An analyst from B of A Securities persists with their Neutral rating on McDonald's, maintaining a target price of $288.
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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