What the Options Market Tells Us About McDonald's

McDonald's Corporation -0.15%

McDonald's Corporation

MCD

265.82

-0.15%

Deep-pocketed investors have adopted a bearish approach towards McDonald's (NYSE:MCD), and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in MCD usually suggests something big is about to happen.

We gleaned this information from our observations today when Benzinga's options scanner highlighted 9 extraordinary options activities for McDonald's. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 22% leaning bullish and 77% bearish. Among these notable options, 4 are puts, totaling $430,470, and 5 are calls, amounting to $361,118.

What's The Price Target?

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $270.0 to $300.0 for McDonald's during the past quarter.

Analyzing Volume & Open Interest

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 $270.0 to $300.0 over the preceding 30 days.

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

Options Call Chart

Largest Options Trades Observed:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Strike Price Total Trade Price Open Interest Volume
MCD PUT TRADE BEARISH 01/17/25 $270.00 $270.0K 862 301
MCD CALL TRADE BEARISH 03/15/24 $270.00 $213.0K 1.4K 0
MCD CALL TRADE NEUTRAL 06/21/24 $270.00 $68.1K 441 20
MCD PUT SWEEP BEARISH 02/16/24 $295.00 $55.5K 379 212
MCD PUT SWEEP BULLISH 02/16/24 $295.00 $55.5K 379 112

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.

Present Market Standing of McDonald's

  • With a volume of 827,793, the price of MCD is up 0.15% at $296.29.
  • RSI indicators hint that the underlying stock may be approaching overbought.
  • Next earnings are expected to be released in 32 days.

What Analysts Are Saying About McDonald's

In the last month, 5 experts released ratings on this stock with an average target price of $310.2.

  • Reflecting concerns, an analyst from RBC Capital lowers its rating to Outperform with a new price target of $315.
  • An analyst from HSBC has revised its rating downward to Buy, adjusting the price target to $317.
  • Consistent in their evaluation, an analyst from Piper Sandler keeps a Neutral rating on McDonald's with a target price of $299.
  • An analyst from BMO Capital persists with their Outperform rating on McDonald's, maintaining a target price of $335.
  • An analyst from Stifel has decided to maintain their Hold rating on McDonald's, which currently sits at a price target of $285.

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.

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