Smart Money Is Betting Big In MCD Options

Financial giants have made a conspicuous bullish move on McDonald's. Our analysis of options history for McDonald's MCD revealed 19 unusual trades.

Delving into the details, we found 47% of traders were bullish, while 36% showed bearish tendencies. Out of all the trades we spotted, 2 were puts, with a value of $62,456, and 17 were calls, valued at $1,111,595.

Expected Price Movements

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $250.0 to $310.0 for McDonald's during the past quarter.

Volume & Open Interest Development

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 $250.0 to $310.0 over the preceding 30 days.

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

Biggest Options Spotted:

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.

Following our analysis of the options activities associated with McDonald's, we pivot to a closer look at the company's own performance.

McDonald's's Current Market Status

• With a volume of 1,523,550, the price of MCD is up 0.17% at $288.04.
• RSI indicators hint that the underlying stock may be overbought.
• Next earnings are expected to be released in 69 days.

Expert Opinions on McDonald's

In the last month, 5 experts released ratings on this stock with an average target price of $297.4.

• An analyst from Loop Capital has decided to maintain their Buy rating on McDonald's, which currently sits at a price target of $342.
• An analyst from Truist Securities persists with their Buy rating on McDonald's, maintaining a target price of $295.
• An analyst from Wedbush has revised its rating downward to Outperform, adjusting the price target to $295.
• An analyst from JP Morgan persists with their Overweight rating on McDonald's, maintaining a target price of $270.
• In a cautious move, an analyst from TD Cowen downgraded its rating to Buy, setting a price target of $285.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for McDonald's, Benzinga Pro gives you real-time options trades alerts.