Whales with a lot of money to spend have taken a noticeably bearish stance on McDonald's.
Looking at options history for McDonald's MCD we detected 8 trades.
If we consider the specifics of each trade, it is accurate to state that 25% of the investors opened trades with bullish expectations and 75% with bearish.
From the overall spotted trades, 3 are puts, for a total amount of $177,535 and 5, calls, for a total amount of $1,382,704.
Expected Price Movements
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $245.0 to $280.0 for McDonald's during the past quarter.
Analyzing Volume & Open Interest
Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for McDonald's's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across McDonald's's significant trades, within a strike price range of $245.0 to $280.0, over the past month.
McDonald's Option Volume And Open Interest Over 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 | SWEEP | BEARISH | 08/16/24 | $2.57 | $2.5 | $2.5 | $270.00 | $1.2M | 1.4K | 128 |
| MCD | PUT | TRADE | BEARISH | 01/17/25 | $18.5 | $17.45 | $18.3 | $270.00 | $100.6K | 1.6K | 0 |
| MCD | PUT | SWEEP | BEARISH | 07/19/24 | $25.35 | $22.5 | $24.5 | $280.00 | $41.6K | 69 | 5 |
| MCD | CALL | TRADE | BEARISH | 01/17/25 | $14.85 | $14.75 | $14.75 | $260.00 | $39.8K | 606 | 13 |
| MCD | PUT | TRADE | BULLISH | 01/17/25 | $13.1 | $13.05 | $13.05 | $260.00 | $35.2K | 1.1K | 26 |
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 1,504,632, the price of MCD is up 0.13% at $257.71.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 33 days.
Professional Analyst Ratings for McDonald's
A total of 4 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $295.25.
- In a cautious move, an analyst from TD Cowen downgraded its rating to Buy, setting a price target of $305.
- An analyst from Goldman Sachs has revised its rating downward to Neutral, adjusting the price target to $288.
- Maintaining their stance, an analyst from B of A Securities continues to hold a Neutral rating for McDonald's, targeting a price of $288.
- 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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