McDonald’s (MCD) Offering Possible 15.21% Return Over the Next 23 Calendar Days

McDonald's's most recent trend suggests a bearish bias. One trading opportunity on McDonald's is a Bear Call Spread using a strike $96.00 short call and a strike $101.00 long call offers a potential 15.21% return on risk over the next 23 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $96.00 by expiration. The full premium credit of $0.66 would be kept by the premium seller. The risk of $4.34 would be incurred if the stock rose above the $101.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for McDonald's is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for McDonald's is bearish.

The RSI indicator is below 20 which suggests that the stock is in oversold territory.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for McDonald's

[$$] McDonald's Stands By Meat Supplier in Crisis
Fri, 25 Jul 2014 10:58:20 GMT
The Wall Street Journal – McDonald's and meat supplier OSI Group date back to the Ray Kroc days in the 1950s. Now, OSI is scrambling to restore its reputation after an expired-meat scandal involving a unit in Shanghai.

McNuggets pulled from sale in HK after meat scare
Fri, 25 Jul 2014 10:20:37 GMT

McNuggets pulled from sale in HK after meat scare
Fri, 25 Jul 2014 10:20:08 GMT

In China meat scandal, McDonald's Japan switches to Thai chicken, no nuggets in Hong Kong
Fri, 25 Jul 2014 10:20:00 GMT

McDonald's Japan stops sourcing all chicken from China
Fri, 25 Jul 2014 10:20:00 GMT

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