Market Whales and Their Recent Bets on MCD Options

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 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 60%, bearish.

Out of all of the special options we uncovered, 7 are puts, for a total amount of $750,630, and 3 are calls, for a total amount of $215,911.

Expected Price Movements

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $250.0 to $310.0 for McDonald's over the last 3 months.

Volume & Open Interest Development

In today's trading context, the average open interest for options of McDonald's stands at 845.89, with a total volume reaching 4,054.00. 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 $310.0, throughout the last 30 days.

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

Largest Options Trades Observed:

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.

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

• Trading volume stands at 1,468,162, with MCD's price down by -0.34%, positioned at $296.03.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 27 days.

Expert Opinions on McDonald's

5 market experts have recently issued ratings for this stock, with a consensus target price of $321.2.

• An analyst from RBC Capital has revised its rating downward to Outperform, adjusting the price target to $315.
• Maintaining their stance, an analyst from Truist Securities continues to hold a Buy rating for McDonald's, targeting a price of $340.
• An analyst from HSBC downgraded its action to Buy with a price target of $317.
• An analyst from BMO Capital has decided to maintain their Outperform rating on McDonald's, which currently sits at a price target of $335.
• Maintaining their stance, an analyst from Piper Sandler continues to hold a Neutral rating for McDonald's, targeting a price of $299.

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.