McDonald’s (MCD) Offering Possible 10.13% Return Over the Next 40 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 $95.00 short call and a strike $100.00 long call offers a potential 10.13% return on risk over the next 40 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $95.00 by expiration. The full premium credit of $0.46 would be kept by the premium seller. The risk of $4.54 would be incurred if the stock rose above the $100.00 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 at 39.63 level which suggests that the stock is neither overbought nor oversold at this time.

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 to customers: Ask about food quality
Mon, 13 Oct 2014 23:57:31 GMT

McDonald's Hires a MythBuster to Answer ‘All-Beef Patty' Skeptics
Mon, 13 Oct 2014 21:46:20 GMT
BusinessWeek – McDonald’s enlists former MythBusters host Grant Imahara to assure customers that it serves real food

McDonald's launches campaign to answer pink slime, other rumors
Mon, 13 Oct 2014 21:20:00 GMT

McDonald's invites icky questions about its food
Mon, 13 Oct 2014 20:55:41 GMT

McDonald's invites icky questions about its food
Mon, 13 Oct 2014 20:55:41 GMT

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