Looking At McDonald's's Recent Unusual Options Activity

High-rolling investors have positioned themselves bullish on McDonald's MCD, and it's important for retail traders to take note. \This activity came to our attention today through Benzinga's tracking of publicly available options data. The identities of these investors are uncertain, but such a significant move in MCD often signals that someone has privileged information.

Today, Benzinga's options scanner spotted 9 options trades for McDonald's. This is not a typical pattern.

The sentiment among these major traders is split, with 44% bullish and 44% bearish. Among all the options we identified, there was one put, amounting to $31,200, and 8 calls, totaling $314,178.

Expected Price Movements

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $190.0 and $292.5 for McDonald's, spanning the last three months.

Volume & Open Interest Development

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in McDonald's's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to McDonald's's substantial trades, within a strike price spectrum from $190.0 to $292.5 over the preceding 30 days.

McDonald's 30-Day Option Volume & Interest Snapshot

Largest Options Trades Observed:

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.

In light of the recent options history for McDonald's, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Current Position of McDonald's

• Currently trading with a volume of 1,145,912, the MCD's price is up by 0.11%, now at $287.36.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 60 days.

What Analysts Are Saying About McDonald's

In the last month, 3 experts released ratings on this stock with an average target price of $296.6666666666667.

• Consistent in their evaluation, an analyst from TD Cowen keeps a Buy rating on McDonald's with a target price of $280.
• An analyst from Evercore ISI Group persists with their Outperform rating on McDonald's, maintaining a target price of $320.
• Maintaining their stance, an analyst from Guggenheim continues to hold a Buy rating for McDonald's, targeting a price of $290.

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.