McDonald’s (MCD) Offering Possible 5.26% Return Over the Next 9 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 5.26% return on risk over the next 9 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 $0.25 would be kept by the premium seller. The risk of $4.75 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 26.86 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 McProblems: Millennial Tastes and Longer Waits
Thu, 11 Dec 2014 19:29:51 GMT

AdWatch: Ronald McDonald Skydives In Dubai
Thu, 11 Dec 2014 18:07:28 GMT

FMHR Final Trade: K, DIS & MCD
Thu, 11 Dec 2014 17:58:00 GMT

Here's What McDonald's Could Be Cutting From The Menu Next Month
Thu, 11 Dec 2014 17:39:00 GMT

McDonald's to Trim Menu & Remove Some Extra Value Meals
Thu, 11 Dec 2014 17:20:02 GMT

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