What the Options Market Tells Us About McDonald's

Investors with a lot of money to spend have taken a bullish 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 12 uncommon options trades for McDonald's.

This isn't normal.

The overall sentiment of these big-money traders is split between 33% bullish and 25%, bearish.

Out of all of the special options we uncovered, 6 are puts, for a total amount of $210,208, and 6 are calls, for a total amount of $256,601.

Predicted Price Range

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $265.0 to $295.0 for McDonald's during the past quarter.

Volume & Open Interest Development

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for McDonald's's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of McDonald's's whale trades within a strike price range from $265.0 to $295.0 in the last 30 days.

McDonald's Option Activity Analysis: Last 30 Days

Significant Options Trades Detected:

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.

In light of the recent options history for McDonald's, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Where Is McDonald's Standing Right Now?

• Currently trading with a volume of 1,193,786, the MCD's price is up by 0.31%, now at $274.35.
• RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
• Anticipated earnings release is in 69 days.

What Analysts Are Saying About McDonald's

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $309.0.

• Reflecting concerns, an analyst from TD Cowen lowers its rating to Buy with a new price target of $305.
• Consistent in their evaluation, an analyst from Wedbush keeps a Outperform rating on McDonald's with a target price of $295.
• Maintaining their stance, an analyst from BMO Capital continues to hold a Outperform rating for McDonald's, targeting a price of $330.
• An analyst from Guggenheim has decided to maintain their Buy rating on McDonald's, which currently sits at a price target of $315.
• An analyst from Baird has decided to maintain their Outperform rating on McDonald's, which currently sits at a price target 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.