McDonald’s (MCD) Offering Possible 42.86% Return Over the Next 27 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 $225.00 short put and a strike $220.00 long put offers a potential 42.86% return on risk over the next 27 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $225.00 by expiration. The full premium credit of $1.50 would be kept by the premium seller. The risk of $3.50 would be incurred if the stock dropped below the $220.00 long put 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 up which suggests that the medium-term momentum for McDonald's is bullish.

The RSI indicator is at 65.41 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

Chipotle burritos — not bowls — are all the rage during the pandemic: CFO
Thu, 22 Oct 2020 17:21:28 +0000
The Chipotle burrito is powering the restaurant chains profits during the pandemic.

Top 5 Mutual Fund Holders of McDonald's
Wed, 21 Oct 2020 17:07:09 +0000
Learn about the five biggest mutual fund holders of McDonald's shares, and learn how their investment portfolios could help your performance.

Were Hedge Funds Right About Souring On McDonald’s Corporation (MCD)?
Wed, 21 Oct 2020 14:48:42 +0000
While the market driven by short-term sentiment influenced by the accomodative interest rate environment in the US, virus news and stimulus talks, many smart money investors are starting to get cautious towards the current bull run since March and hedging or reducing many of their long positions. Some fund managers are betting on Dow hitting […]

Better Buy: McDonald's vs. Yum China
Tue, 20 Oct 2020 12:17:31 +0000
McDonald's (NYSE: MCD) and Yum China (NYSE: YUMC) are two of the largest fast-food companies in the world. McDonald's operates and franchises more than 39,000 restaurants in over 100 countries. Yum China, which was spun off from Yum!

How Retailers Use Artificial Intelligence to Know What You Want to Buy Before You Do
Tue, 20 Oct 2020 12:00:00 +0000
Companies have more information than ever before thanks to Covid-19—and more computing power than ever before to parse it for patterns that keep customers loyal.

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