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 13 uncommon options trades for McDonald's.
This isn't normal.
The overall sentiment of these big-money traders is split between 69% bullish and 23%, bearish.
Out of all of the special options we uncovered, 2 are puts, for a total amount of $69,845, and 11 are calls, for a total amount of $721,553.
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 $230.0 to $300.0 for McDonald's over the last 3 months.
Volume & Open Interest Trends
In terms of liquidity and interest, the mean open interest for McDonald's options trades today is 1373.43 with a total volume of 5,352.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for McDonald's's big money trades within a strike price range of $230.0 to $300.0 over the last 30 days.
McDonald's Call and Put Volume: 30-Day Overview
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 | 01/16/26 | $12.2 | $12.15 | $12.2 | $300.00 | $152.5K | 1.0K | 125 |
| MCD | CALL | TRADE | BEARISH | 01/16/26 | $43.75 | $43.0 | $43.0 | $230.00 | $141.9K | 39 | 35 |
| MCD | CALL | TRADE | BULLISH | 08/16/24 | $4.15 | $3.95 | $4.1 | $260.00 | $100.4K | 4.1K | 1.0K |
| MCD | CALL | SWEEP | BULLISH | 08/16/24 | $4.2 | $4.0 | $4.2 | $260.00 | $62.6K | 4.1K | 564 |
| MCD | CALL | SWEEP | BULLISH | 08/16/24 | $4.15 | $4.1 | $4.15 | $260.00 | $54.3K | 4.1K | 82 |
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.
Current Position of McDonald's
- With a volume of 965,170, the price of MCD is up 0.09% at $253.6.
- RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
- Next earnings are expected to be released in 4 days.
Professional Analyst Ratings for McDonald's
In the last month, 5 experts released ratings on this stock with an average target price of $291.0.
- Consistent in their evaluation, an analyst from TD Cowen keeps a Buy rating on McDonald's with a target price of $285.
- In a cautious move, an analyst from Wedbush downgraded its rating to Outperform, setting a price target of $295.
- Consistent in their evaluation, an analyst from Deutsche Bank keeps a Buy rating on McDonald's with a target price of $295.
- Consistent in their evaluation, an analyst from Citigroup keeps a Neutral rating on McDonald's with a target price of $280.
- Maintaining their stance, an analyst from Morgan Stanley continues to hold a Overweight rating for McDonald's, targeting a price of $300.
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for McDonald's with Benzinga Pro for real-time alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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