McDonald’s (MCD) Offering Possible 5.93% Return Over the Next 12 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 $94.00 short call and a strike $99.00 long call offers a potential 5.93% return on risk over the next 12 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $94.00 by expiration. The full premium credit of $0.28 would be kept by the premium seller. The risk of $4.72 would be incurred if the stock rose above the $99.00 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 31.42 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

Chick-fil-A icon's death signals fast-food shift
Mon, 08 Sep 2014 22:38:19 GMT

Another same-store sales drop expected for McDonald's
Mon, 08 Sep 2014 20:27:25 GMT

Chipotle's wrong — fast food isn't going away (not yet, at least)
Mon, 08 Sep 2014 19:02:39 GMT

The Zacks Analyst Blog Highlights: Intel, Advanced Micro Devices, Johnson & Johnson, Bayer and McDonald's
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Mon, 08 Sep 2014 11:59:53 GMT

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