McDonald’s (MCD) Offering Possible 19.62% Return Over the Next 30 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 $200.00 short put and a strike $190.00 long put offers a potential 19.62% return on risk over the next 30 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $200.00 by expiration. The full premium credit of $1.64 would be kept by the premium seller. The risk of $8.36 would be incurred if the stock dropped below the $190.00 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 37.74 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

Dow Jones Falls After Trump Makes Stimulus Demand, Nio Stock Down Again
Mon, 14 Dec 2020 21:35:20 +0000
The Dow Jones Industrial Average sank after President Donald Trump issued a coronavirus stimulus demand. Tesla stock rose as Nio stock fell.

Dow Jones Backs Off Highs, Falls Below 30,000 Level; Tesla Spikes 5%, Marijuana Stock IIPR Soars To New High
Mon, 14 Dec 2020 20:03:48 +0000
The Dow Jones and S&P 500 had a hard time keeping up with the Nasdaq composite Monday, which was up 1% in late trading.

McDonald’s upgraded based on strength of new menu items and the anticipated return of breakfast
Mon, 14 Dec 2020 19:15:00 +0000
McDonald's Corp. stock rose 2.4% in Monday trading after the fast-food giant was upgraded to buy from neutral and UBS.

Why McDonald's Stock Hasn't Soared During The Pandemic
Mon, 14 Dec 2020 18:28:10 +0000
On CNBC's “Fast Money Halftime Report,” host Scott Wapner asked the investment committee why nobody owns McDonald's (NYSE: MCD) and why it hasn't done better during the pandemic.”McDonald's is still only trading 24x next's year earnings,” said Karen Firestone. Many of its competitors, such as Chipotle (NYSE: CMG) and Starbucks (NASDAQ: SBUX), are trading at very high multiples.”I think it's attractive if you're in that space but the problem is McDonald's is considered an eat-in and takeout place, and eat-in has been a problem. It's not the kind of place that seems to have gotten traction on its business through the pandemic,” said Firestone.She also noted the fast-food giant doesn't have the website and digital platform that its competitors have. Joe Terranova said the company has yet to appeal to certain generations, unlike competitor Shake Shack (NYSE: SHAK).”McDonald's has failed to define itself to a younger generation, which is exactly what Shake Shack has done,” said Terranova.See more from Benzinga * Click here for options trades from Benzinga * DoorDash's Valuation Is Too Lofty, Joe Terranova Says(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Battered restaurant industry needs coronavirus stimulus help now: Dunkin' Brands chairman
Mon, 14 Dec 2020 17:36:55 +0000
Former Dunkin' Brands CEO Nigel Travis said he is disappointed in Washington's lack of help.

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