McDonald’s (MCD) Offering Possible 12.11% Return Over the Next 22 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 12.11% return on risk over the next 22 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 $0.54 would be kept by the premium seller. The risk of $4.46 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 at 72.46 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

Sales of McNuggets, Rolex Watches Show Business as Usual in Hong Kong
Sun, 02 Nov 2014 16:00:01 GMT

In mobile payments war, consumers are a powerful army
Sun, 02 Nov 2014 11:30:51 GMT

10 famed US franchises that faced financial ruin
Sat, 01 Nov 2014 11:00:00 GMT

IBD 50 Stock Nike Scores With Fit Crowd And Investors
Fri, 31 Oct 2014 20:26:00 GMT

Why McDonald’s same-store sales declined
Fri, 31 Oct 2014 19:33:41 GMT

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