McDonald’s (MCD) Offering Possible 16.28% Return Over the Next 8 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 16.28% return on risk over the next 8 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 $0.70 would be kept by the premium seller. The risk of $4.30 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 43.35 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

Why Yum! Brands wants to grow outside the US
Fri, 10 Oct 2014 17:57:26 GMT

Is McDonald's Going Fast Casual?
Fri, 10 Oct 2014 17:19:50 GMT

A critical overview of Yum! Brands for investors
Fri, 10 Oct 2014 13:57:25 GMT

Restaurant chains trimming the fat, study shows
Wed, 08 Oct 2014 22:23:44 GMT
USA TODAY – New menu items average 60 fewer calories than current items.

McDonald's' Japan Earnings to Plunge on Supplier Scandal
Wed, 08 Oct 2014 16:32:14 GMT

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