McDonald’s (MCD) Offering Possible 13.64% Return Over the Next 14 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 $185.00 short put and a strike $180.00 long put offers a potential 13.64% return on risk over the next 14 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $185.00 by expiration. The full premium credit of $0.60 would be kept by the premium seller. The risk of $4.40 would be incurred if the stock dropped below the $180.00 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 at 69.64 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

Starbucks Stock Is Unstoppable… for Now
Tue, 02 Apr 2019 14:14:30 +0000
For the past nine months, Starbucks (NASDAQ:SBUX) stock has been in major rally mode, as the global retail coffee giant has regained some operational momentum. SBUX has successfully carried out some key growth initiatives which together have reduced the company's competitive pressures.Source: Shutterstock The company's comparable sales and traffic trends have improved globally, and Starbucks stock has risen more than 50% from its late June 2018 lows. * 15 Stocks to Buy Leading the Financial Charge It appears that the rally of Starbucks stock can continue deep into 2019. There are reasons to believe that its traffic trends will remain favorable for the balance of the year, and that those favorable trends will combine with really easy year-over-year comparisons to make the company's results look very good. If that scenario plays out, SBUX should report really strong numbers throughout the balance of fiscal 2019, likely keeping SBUX stock on a winning path.InvestorPlace – Stock Market News, Stock Advice & Trading TipsBut the rally of Starbucks stock is likely to be challenged by fundamental risks. Namely, the long-term growth outlook of Starbucks stock is slowing, its competitive risks are still building, and Starbucks stock is priced for perfection. At some point in time, these fundamental risks will affect SBUX, and Starbucks stock will fall.But that won't happen now. For the time being, SBUX stock looks unstoppable, as it's regaining global operational momentum. On the Bright SideSBUX stock looks unstoppable in the near-term because its global comparable sales and traffic trends are poised to keep improving in 2019.On a global basis, its comparable-sales growth was 4% last quarter, the strongest gain since the third quarter of 2017. Meanwhile, its traffic was flat after three consecutive quarters of negative traffic growth. Furthermore, as fiscal 2019 progresses, its comparisons will only get easier, as 2018 was a year defined by largely negative traffic growth and 3%-and-under comparable sales growth.In the U.S., Starbucks has rattled off back-to-back, 4% comparable sales growth quarters for the first time since late 2016. Traffic growth was also flat last quarter after two consecutive quarters of declines. Consistent with the global narrative, the comparisons for the company's U.S. business only get easier as fiscal 2019 progresses.It's the same story in the China-Asia Pacific and Europe, Middle East, and Africa regions. Comparable sales and traffic growth hit multi-quarter highs in both areas last quarter, and the comparisons for the rest of the year in those regions will be pretty easy, too.All in all, SBUX is firing on all cylinders right now and should continue to do so for the foreseeable future. The company is leveraging digital innovation, an enhanced mobile ordering experience, renovated stores and drive-thrus, menu innovations, and relevant celebrity partnerships to win back breakfast snack and drink market share. Its strategy is working and will continue to work, mostly thanks to celebrity partnerships in 2019 and easy comparisons.Thus, Starbucks' results will remain good in 2019. As long as those numbers remain good, Starbucks stock will likely stay on a winning path. Some Things to Worry AboutAlthough SBUX stock is positioned to stay on a winning path in the near- term, Starbucks stock is facing fundamental risks which could derail the rally.The first big risk is that the company's growth is slowing. A few years back, SBUX was well-known for its track record of consistently reporting 5% or higher comparable sales growth. That streak broke in mid-2016. Since then, SBUX's quarterly comparable sales growth has not reached 5%. That won't happen anytime soon, either, as its consolidated comparable sales growth is expected to be around 3%-4% over the long-term.Some investors are buying Starbucks stock as if this company is doing as well as it ever has. But it's not. Its growth is slowing, and that's a problem.The second big risk facing Starbucks stock is that its growth will continue to slow thanks to still-strengthening competition. Specifically, McDonald's (NYSE:MCD) continues to expand its presence in the breakfast snack and drink category. That creates sales, traffic, and margin pressures on SBUX. Meanwhile, independent coffee shops continue to open up left and right. There's also a new craft coffee trend that could hurt Starbucks' results.Given all these competitive risks, it's likely that once the company's comparisons gets harder and its boost from celebrity partnerships cool, Starbucks' growth will slow. When that occurs, Starbucks stock will drop.The third big risk facing Starbucks stock is valuation. SBUX stock is priced for perfection. The stock trades at 27 times analysts' consensus forward earning estimate. Over the last five years, the average forward multiple of Starbucks stock was 25, and during part of that stretch, its comparable sales growth was much higher (5% and up) than what it is expected to be over the next five years (3%-4% or lower). So the valuation of SBUX stock seems stretched at this point. Any bad news could cause the valuation of SBUX stock to drop meaningfully. The Bottom Line on Starbucks StockSBUX is a solid company, but the valuation of Starbucks stock today is overly optimistic, given the company's long-term growth outlook. As long as the company's results remain good, SBUX stock can maintain its overly optimistic valuation and head higher. Eventually, though, the company's numbers will miss expectations. When they do, SBUX could drop in a big way.As of this writing, Luke Lango was long MCD. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks From Around the World That Beat U.S. Stocks * 7 Breakout Stocks to Watch in 2019 * 5 Cheap Small-Cap Stocks to Buy Compare Brokers The post Starbucks Stock Is Unstoppable… for Now appeared first on InvestorPlace.

Amazon, Dow Inc., Boeing, McDonald's and Slack – 5 Things You Must Know
Tue, 02 Apr 2019 11:13:00 +0000
U.S. stock futures turned mixed Tuesday and global shares traded mostly to the upside as investors balanced stronger-than-expected factory data from the U.S. and China against increasing evidence that the ongoing trade war between the world's two biggest economies has hurt growth in other parts of the world. Private readings of manufacturing activity in both the U.S. and China released Monday showed modest improvements for both of the world's factory powerhouses in March, with China rising into growth mode for the first time in four months and the U.S. bouncing from two-year lows. Contracts tied to the Dow Jones Industrial Average rose 9 points, futures for the S&P 500 were up 0.5 points, and Nasdaq futures rose 0.5 points.

McDonald's Buys Stake in Mobile Software Maker Plexure
Tue, 02 Apr 2019 10:08:00 +0000
purchased a 9.9% stake in mobile software maker Plexure, the company's second major investment in a technology company in as many weeks. McDonald's will buy 13.8 million shares of Plexure, a New Zealand-based company, for about $5 million, according to reports. McDonald's last week said it would acquire Dynamic Yield, the Israeli digital startup, to improve the customer experience, particularly during the drive-thru.

April Fool’s Day 2019: McDonald’s McPickle Burger Prank Called ‘Cruel’
Mon, 01 Apr 2019 21:10:10 +0000
McDonald's (NYSE:MCD) has upset a lot of Aussies following the burger chain's decision to roll out the McPickle Burger… which it didn't actually do because the whole announcement was an April Fool's Day prank.Source: FlickrThe restaurant announced the item in Australia and even shared pictures of the fake sandwich, which looks like a big mac but with plenty of pickles instead of the two beef patties. It also turns out that some Mickey D's fans are not exactly happy with the move.The McDonald's McPickle Burger prank fooled some fans and got them excited about a pickle-based sandwich, because that's the world we live in now. The item was revealed earlier today and it included a description that sounds like an actual marketing or social media person wrote it:InvestorPlace – Stock Market News, Stock Advice & Trading TipsPickle lovers, it's the news you've all been waiting for. We're super stoked to announce the launch of our brand new McPickle Burger. It's time to tuck into juicy, flavoursome pickles layered between melted cheese, ketchup sauce and toasted sesame seed buns. It's sure to be a treat for all your senses.Soon after posting the image, the McDonald's Australia account wrote "available until yesterday." Some people got so upset at the burger chain that they went as far as to call the business "cruel" for the prank.MCD stock is down about 0.8% on Monday following the news. More From InvestorPlace * The Elite 8 Stocks to Buy for Massive Outperformance * 7 Reasons to Buy Housing Stocks in 2019 * 8 Genomic Testing Stocks That Can Ease the Sting of Theranos Compare Brokers The post April Fool's Day 2019: McDonald's McPickle Burger Prank Called 'Cruel' appeared first on InvestorPlace.

Dow Jones Stocks To Buy And Watch In April 2019
Mon, 01 Apr 2019 20:27:33 +0000
Among the Dow Jones stocks, Apple and Intel are among the top stocks to buy and watch in April 2019.

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