Behind the Scenes of McDonald's's Latest Options Trends

High-rolling investors have positioned themselves bearish 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 8 options trades for McDonald's. This is not a typical pattern.

The sentiment among these major traders is split, with 25% bullish and 75% bearish. Among all the options we identified, there was one put, amounting to $28,080, and 7 calls, totaling $648,349.

Predicted Price Range

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $285.0 and $300.0 for McDonald's, spanning the last three months.

Insights into Volume & Open Interest

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 $285.0 to $300.0 over the preceding 30 days.

McDonald's 30-Day Option Volume & Interest Snapshot

Noteworthy Options Activity:

About McDonald's

McDonald's is the largest restaurant owner-operator in the world, with 2022 system sales of $116 billion across more than 40,000 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.

Current Position of McDonald's

• Trading volume stands at 324,741, with MCD's price down by -0.13%, positioned at $291.0.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 39 days.

What Analysts Are Saying About McDonald's

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $318.4.

• An analyst from RBC Capital has revised its rating downward to Outperform, adjusting the price target to $315.
• An analyst from Oppenheimer has revised its rating downward to Outperform, adjusting the price target to $315.
• Maintaining their stance, an analyst from Citigroup continues to hold a Neutral rating for McDonald's, targeting a price of $310.
• An analyst from HSBC has revised its rating downward to Buy, adjusting the price target to $317.
• Consistent in their evaluation, an analyst from BMO Capital keeps a Outperform rating on McDonald's with a target price of $335.

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.