McDonald’s (MCD) Offering Possible 9.41% Return Over the Next 8 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 $94.00 short call and a strike $99.00 long call offers a potential 9.41% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $94.00 by expiration. The full premium credit of $0.43 would be kept by the premium seller. The risk of $4.57 would be incurred if the stock rose above the $99.00 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

Fast Food Chains in China Release Supplier Information
Mon, 11 Aug 2014 09:57:14 GMT

McDonald's Japan Bans Smoking in Its Restaurants
Mon, 11 Aug 2014 07:32:57 GMT

McDonald's, Yum release supplier data after China food safety scare
Mon, 11 Aug 2014 06:39:34 GMT

McDonald’s, Yum Ordered to Reveal Suppliers Amid Shanghai Probe
Mon, 11 Aug 2014 06:30:37 GMT

McDonald's, Yum release supplier data after China food safety scare
Mon, 11 Aug 2014 03:30:27 GMT

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