Whale Alert: Big Money Shows Confidence in McDonald's - What's Behind Their Move?

Someone with a lot of money to spend has taken a bullish stance on McDonald's MCD.

And retail traders should know.

We noticed this today when the big position 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.

So how do we know what this whale just did?

Today, Benzinga's options scanner spotted 16 uncommon options trades for McDonald's.

This isn't normal.

The overall sentiment of these big-money traders is split between 50% bullish and 50%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $162,725, and 14 are calls, for a total amount of $870,515.

Predicted Price Range

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $145.0 to $275.0 for McDonald's over the last 3 months.

Volume & Open Interest Trends

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 $145.0 to $275.0 over the preceding 30 days.

McDonald's Call and Put Volume: 30-Day Overview

Biggest Options Spotted:

Present Market Standing of McDonald's

• With a volume of 1,109,387, the price of MCD is up 0.05% at $269.04.
• RSI indicators hint that the underlying stock may be overbought.
• Next earnings are expected to be released in 84 days.

What Analysts Are Saying About McDonald's:

• Reflecting concerns, Stephens & Co. lowers its rating to Overweight with a new price target of $325.
• Reflecting concerns, Wedbush lowers its rating to Outperform with a new price target of $310.
• In a cautious move, RBC Capital downgraded its rating to Outperform, setting a price target of $315.
• Consistent in their evaluation, BMO Capital keeps a Outperform rating on McDonald's with a target price of $325.
• Consistent in their evaluation, Stephens & Co. keeps a Overweight rating on McDonald's with a target price of $300.

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.