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 11 options trades for McDonald's. This is not a typical pattern.
The sentiment among these major traders is split, with 27% bullish and 72% bearish. Among all the options we identified, there was one put, amounting to $28,400, and 10 calls, totaling $480,584.
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 $270.0 to $295.0 for McDonald's over the last 3 months.
Volume & Open Interest Trends
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 $270.0 to $295.0, over the past month.
McDonald's Option Volume And Open Interest Over Last 30 Days
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| MCD | CALL | SWEEP | BULLISH | 03/28/24 | $270.00 | $130.0K | 139 | 100 |
| MCD | CALL | TRADE | BEARISH | 04/19/24 | $295.00 | $65.0K | 2.1K | 7.7K |
| MCD | CALL | TRADE | BEARISH | 04/19/24 | $295.00 | $60.0K | 2.1K | 7.5K |
| MCD | CALL | TRADE | BULLISH | 01/17/25 | $285.00 | $51.8K | 393 | 0 |
| MCD | CALL | SWEEP | BULLISH | 04/19/24 | $280.00 | $36.8K | 1.2K | 97 |
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.
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.
Present Market Standing of McDonald's
- Trading volume stands at 1,248,113, with MCD's price down by -0.06%, positioned at $278.42.
- RSI indicators show the stock to be is currently neutral between overbought and oversold.
- Earnings announcement expected in 35 days.
Professional Analyst Ratings for McDonald's
Over the past month, 1 industry analysts have shared their insights on this stock, proposing an average target price of $325.0.
- Reflecting concerns, an analyst from TD Cowen lowers its rating to Outperform with a new price target of $325.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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