McDonald's Unusual Options Activity For April 11

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 this is an institution or just a wealthy individual, we don't know. But when something this big happens with MCD, it often means somebody knows something is about to happen.

Today, Benzinga's options scanner spotted 11 options trades for McDonald's.

This isn't normal.

The overall sentiment of these big-money traders is split between 27% bullish and 45%, bearish.

Out of all of the options we uncovered, 10 are puts, for a total amount of $520,310, and there was 1 call, for a total amount of $75,500.

Projected Price Targets

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $250.0 and $320.0 for McDonald's, spanning the last three months.

Analyzing Volume & Open Interest

In today's trading context, the average open interest for options of McDonald's stands at 890.43, with a total volume reaching 881.00. 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 $250.0 to $320.0, throughout the last 30 days.

McDonald's Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

About McDonald's

McDonald's is the largest restaurant owner-operator in the world, with 2024 system sales of $131 billion across more than 43,000 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.

Current Position of McDonald's

• With a trading volume of 775,510, the price of MCD is down by -0.18%, reaching $306.22.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 18 days from now.

Expert Opinions on McDonald's

Over the past month, 3 industry analysts have shared their insights on this stock, proposing an average target price of $329.33.

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. * An analyst from Citigroup has decided to maintain their Buy rating on McDonald's, which currently sits at a price target of $353. * An analyst from Morgan Stanley persists with their Overweight rating on McDonald's, maintaining a target price of $335. * Consistent in their evaluation, an analyst from Baird keeps a Neutral rating on McDonald's with a target 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.