McDonald’s (MCD) Offering Possible 5.93% Return Over the Next 16 Calendar Days

McDonald's's most recent trend suggests a bullish bias. One trading opportunity on McDonald's is a Bull Put Spread using a strike $92.50 short put and a strike $87.50 long put offers a potential 5.93% return on risk over the next 16 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $92.50 by expiration. The full premium credit of $0.28 would be kept by the premium seller. The risk of $4.72 would be incurred if the stock dropped below the $87.50 long put strike price.

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

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

The RSI indicator is above 80 which suggests that the stock is in overbought 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

Why shares in Dunkin’ Brands sank after earnings release
Thu, 06 Nov 2014 21:00:11 GMT

About 25% of McDonald's stores won't sell McRibs
Thu, 06 Nov 2014 16:25:45 GMT

Why investors sold McDonald’s shares after 3Q14 earnings
Thu, 06 Nov 2014 13:00:05 GMT

10-Q for McDonald's Corp.
Thu, 06 Nov 2014 00:08:33 GMT

McDonald’s Bringing Back McRib in 75% of U.S. Restaurants
Wed, 05 Nov 2014 23:01:53 GMT

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