McDonald’s (MCD) Offering Possible 11.36% Return Over the Next 32 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 $92.50 short call and a strike $97.50 long call offers a potential 11.36% return on risk over the next 32 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $92.50 by expiration. The full premium credit of $0.51 would be kept by the premium seller. The risk of $4.49 would be incurred if the stock rose above the $97.50 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 21.09 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 in Japan limits orders of fries
Wed, 17 Dec 2014 05:06:32 GMT

Stocks with China exposure at risk?
Tue, 16 Dec 2014 22:37:00 GMT

Morningstar Analyst On McDonald's: Activist Investor Could Push For Management Change, Franchise Increase
Tue, 16 Dec 2014 21:34:56 GMT

Morningstar Analyst On Ackman Possibly Seeking REIT Spinoff For McDonald's: ‘I Think Management Would Push Back On It'
Tue, 16 Dec 2014 21:23:22 GMT

Morningstar Analyst On Rumor Of Ackman Push For McDonald's REIT: What Works For Darden Might Not Work For McDonald's
Tue, 16 Dec 2014 20:50:16 GMT

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