McDonald’s (MCD) Offering Possible 16.01% Return Over the Next 21 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 $125.00 short call and a strike $130.00 long call offers a potential 16.01% return on risk over the next 21 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $125.00 by expiration. The full premium credit of $0.69 would be kept by the premium seller. The risk of $4.31 would be incurred if the stock rose above the $130.00 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 29.11 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 French Headquarters Searched in Tax Probe
Fri, 27 May 2016 05:34:58 GMT

PRESS DIGEST- New York Times business news – May 27
Fri, 27 May 2016 05:10:00 GMT
Reuters – The following are the top stories on the New York Times business pages. Reuters has not verified these stories and does not vouch for their accuracy. – In new court documents filed Wednesday, directors …

PRESS DIGEST- British Business – May 27
Fri, 27 May 2016 00:21:56 GMT
Reuters – The following are the top stories on the business pages of British newspapers. The government's proposal to save Tata Steel UK could set a dangerous precedent, ultimately costing millions of pension savers up to 200 billion pounds in lost retirement incomes, experts warned yesterday. Government plans to overhaul the pension scheme behind Tata Steel have been supported by the trustees despite warnings that the move would set a dangerous precedent.

McDonald’s CEO Dodges Harsh $15 Fast-Food Wage Reality
Thu, 26 May 2016 22:25:24 GMT

Final Trade: McDonald's, Pandora, & more
Thu, 26 May 2016 21:58:00 GMT

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