Investors with a lot of money to spend have taken a bearish 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 32 uncommon options trades for McDonald's.
This isn't normal.
The overall sentiment of these big-money traders is split between 37% bullish and 46%, bearish.
Out of all of the special options we uncovered, 19 are puts, for a total amount of $1,642,328, and 13 are calls, for a total amount of $583,686.
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 $260.0 to $315.0 for McDonald's during the past quarter.
Analyzing Volume & Open Interest
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 $260.0 to $315.0 in the last 30 days.
McDonald's Call and Put Volume: 30-Day Overview
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| MCD | PUT | TRADE | BULLISH | 01/17/25 | $2.35 | $2.28 | $2.28 | $260.00 | $456.0K | 2.1K | 2.1K |
| MCD | PUT | TRADE | BULLISH | 11/15/24 | $1.75 | $1.46 | $1.57 | $265.00 | $314.0K | 544 | 2.0K |
| MCD | CALL | SWEEP | NEUTRAL | 11/15/24 | $8.9 | $8.4 | $8.63 | $300.00 | $145.9K | 783 | 957 |
| MCD | PUT | TRADE | BEARISH | 11/15/24 | $20.8 | $19.85 | $20.8 | $310.00 | $122.7K | 1.4K | 321 |
| MCD | PUT | TRADE | NEUTRAL | 11/15/24 | $21.0 | $19.8 | $20.45 | $310.00 | $104.2K | 1.4K | 198 |
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.
Following our analysis of the options activities associated with McDonald's, we pivot to a closer look at the company's own performance.
Present Market Standing of McDonald's
- Currently trading with a volume of 9,497,965, the MCD's price is down by -4.6%, now at $300.21.
- RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
- Anticipated earnings release is in 6 days.
Professional Analyst Ratings for McDonald's
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $325.4.
Unusual Options Activity Detected: Smart Money on the Move
Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * In a cautious move, an analyst from Baird downgraded its rating to Neutral, setting a price target of $290. * An analyst from Barclays has decided to maintain their Overweight rating on McDonald's, which currently sits at a price target of $325. * An analyst from UBS has decided to maintain their Buy rating on McDonald's, which currently sits at a price target of $345. * Consistent in their evaluation, an analyst from Citigroup keeps a Neutral rating on McDonald's with a target price of $317. * An analyst from Wells Fargo persists with their Overweight rating on McDonald's, maintaining a target price of $350.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for McDonald's, Benzinga Pro gives you real-time options trades alerts.
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