McDonald’s (MCD) Offering Possible 10.86% Return Over the Next 10 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 10.86% return on risk over the next 10 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 $0.49 would be kept by the premium seller. The risk of $4.51 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

Ukraine-driven gains muted by Wall St upturn
Wed, 06 Aug 2014 21:39:00 GMT

McDonald's CEO Reveals The Brand's 4 Biggest Problems
Wed, 06 Aug 2014 18:43:00 GMT

McDonald's Is A Safe Bet To Ride Out A Downturn In The Markets
Wed, 06 Aug 2014 17:07:21 GMT

McDonald's Drive-Through Speed Test: Food in 60 Seconds or Less
Wed, 06 Aug 2014 16:15:25 GMT
BusinessWeek – Drive-through customers at Florida's 800 McDonald's locations will be guaranteed their food within 60 seconds of payment or get a free sandwich

Europe closes lower; Ukraine tensions weigh
Wed, 06 Aug 2014 16:00:45 GMT
CNBC – European shares closed lower on Wednesday, with investors reacting to disappointing data and escalating tensions between Russia and Ukraine.

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