McDonald’s Offering Possible 2.25% Return Over the Next 12 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 $95.00 short put and a strike $90.00 long put offers a potential 2.25% return on risk over the next 12 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $95.00 by expiration. The full premium credit of $0.11 would be kept by the premium seller. The risk of $4.89 would be incurred if the stock dropped below the $90.00 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 below 20 which suggests that the stock is in oversold territory.

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

Burger King Worldwide Reports Less Than Royal Results
Mon, 04 Nov 2013 23:42:03 GMT
Motley Fool – Burger King released its third-quarter results in line with other fast-food chains.

Cheaper Chickens Seen in Record Corn Cutting Costs: Commodities
Mon, 04 Nov 2013 21:17:22 GMT
Bloomberg – The biggest-ever U.S. corn harvest is spurring poultry farms to expand chicken production, sending domestic supplies of the meat to a record and cutting costs for buyers from Costco Wholesale Corp. to …

Fast-food Condiment Alert: McDonald’s Drops Heinz Ketchup
Mon, 04 Nov 2013 21:12:12 GMT
Motley Fool – McDonald’s drops Heinz ketchup from its condiment list because of the presence of a new company executive, who used to work for Burger King.

One Put, One Call Option To Know About for McDonald's Corp
Mon, 04 Nov 2013 19:09:00 GMT
Forbes – Consistently, one of the more popular stocks people enter into their stock options watchlist at Stock Options Channel is McDonald's Corp (NYSE: MCD). So this week we highlight one interesting put contract, and one interesting call contract, from the March 2014 expiration for MCD. The put contract our YieldBoost algorithm identified […]

Dow Today: McDonald's Corporation (MCD) Lower
Mon, 04 Nov 2013 18:00:00 GMT
TheStreet – Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. The …

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