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 53% bullish and 38%, bearish.
Out of all of the special options we uncovered, 2 are puts, for a total amount of $86,700, and 11 are calls, for a total amount of $920,754.
Predicted Price Range
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $280.0 to $305.0 for McDonald's during the past quarter.
Volume & Open Interest Development
In today's trading context, the average open interest for options of McDonald's stands at 1750.14, with a total volume reaching 1,327.00. 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 $280.0 to $305.0, throughout the last 30 days.
McDonald's Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| MCD | CALL | SWEEP | BEARISH | 01/17/25 | $11.15 | $10.9 | $10.85 | $300.00 | $271.2K | 3.2K | 408 |
| MCD | CALL | SWEEP | BULLISH | 01/16/26 | $31.35 | $30.9 | $31.35 | $290.00 | $153.6K | 813 | 53 |
| MCD | CALL | TRADE | BULLISH | 03/21/25 | $18.4 | $18.15 | $18.4 | $290.00 | $101.1K | 231 | 55 |
| MCD | CALL | TRADE | BULLISH | 01/16/26 | $31.75 | $30.4 | $31.75 | $290.00 | $98.4K | 813 | 91 |
| MCD | CALL | SWEEP | BULLISH | 01/17/25 | $8.65 | $7.95 | $8.65 | $305.00 | $77.8K | 1.0K | 100 |
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?
- Currently trading with a volume of 1,522,235, the MCD's price is up by 1.23%, now at $291.52.
- RSI readings suggest the stock is currently may be overbought.
- Anticipated earnings release is in 52 days.
What Analysts Are Saying About McDonald's
A total of 2 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $340.0.
- An analyst from Evercore ISI Group persists with their Outperform rating on McDonald's, maintaining a target price of $320.
- Consistent in their evaluation, an analyst from Tigress Financial keeps a Buy rating on McDonald's with a target price of $360.
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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