McDonald’s (MCD) Offering Possible 6.38% Return Over the Next 16 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 $97.50 short call and a strike $103.00 long call offers a potential 6.38% return on risk over the next 16 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $97.50 by expiration. The full premium credit of $0.33 would be kept by the premium seller. The risk of $5.17 would be incurred if the stock rose above the $103.00 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 51.51 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

Even The Federal Reserve Knows Chipotle Is Crushing McDonald's
Thu, 04 Dec 2014 22:32:00 GMT

Minimum wage fight hits the streets of nearly 200 U.S. cities
Thu, 04 Dec 2014 22:24:40 GMT
Reuters – Thousands of U.S. fast-food workers and supporters marched in nearly 200 cities around the United States on Thursday including Chicago and Boston to advocate for a $15 minimum wage and other labor rights. …

2nd Anniversary of fast food fight for living wage
Thu, 04 Dec 2014 21:49:00 GMT

McDonald's Gets Healthier With Whole Fruit Option
Thu, 04 Dec 2014 18:09:06 GMT

Restaurant stock year in review: The right, the wrong and the lessons learned
Thu, 04 Dec 2014 16:23:06 GMT

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