Decoding McDonald's's Options Activity: What's the Big Picture?

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 10 uncommon options trades for McDonald's.

This isn't normal.

The overall sentiment of these big-money traders is split between 40% bullish and 30%, bearish.

Out of all of the special options we uncovered, 3 are puts, for a total amount of $183,513, and 7 are calls, for a total amount of $300,785.

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 $210.0 to $310.0 for McDonald's over the last 3 months.

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 $210.0 to $310.0, over the past month.

McDonald's Option Activity Analysis: Last 30 Days

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.

Having examined the options trading patterns of McDonald's, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Present Market Standing of McDonald's

• Currently trading with a volume of 1,124,372, the MCD's price is up by 0.78%, now at $301.31.
• RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
• Anticipated earnings release is in 84 days.

Professional Analyst Ratings for McDonald's

5 market experts have recently issued ratings for this stock, with a consensus target price of $319.4.

Turn $1000 into $1270 in just 20 days?

20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * Maintaining their stance, an analyst from BMO Capital continues to hold a Outperform rating for McDonald's, targeting a price of $335. * An analyst from Wedbush downgraded its action to Outperform with a price target of $295. * Reflecting concerns, an analyst from TD Cowen lowers its rating to Hold with a new price target of $300. * 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 Truist Securities has decided to maintain their Buy rating on McDonald's, which currently sits at a price target of $342.

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.