McDonald’s (MCD) Offering Possible 21.65% Return Over the Next 25 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 21.65% return on risk over the next 25 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 $0.89 would be kept by the premium seller. The risk of $4.11 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 46.29 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

[$$] How to Revive McDonald’s? Ideas from Four Experts
Wed, 24 Dec 2014 05:16:04 GMT
The Wall Street Journal – The Wall Street Journal asked a group of restaurant-industry leaders and a member of the chain’s coveted millennial generation whether McDonald’s stated plans will be enough to reinvigorate the brand.

Fiesta Restaurant Group Spices Up Fast-Casual Sector
Tue, 23 Dec 2014 19:22:00 GMT

The Four Reasons Casual Dining Restaurants are Stealing Market Share from Fast Food Chains
Tue, 23 Dec 2014 17:36:09 GMT

McDonald's Revamps Itself To Woo The Customers
Tue, 23 Dec 2014 14:59:07 GMT

TGI Fridays sells UK franchise to Electra as private equity dines out
Tue, 23 Dec 2014 14:45:49 GMT

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