McDonald’s (MCD) Offering Possible 6.16% Return Over the Next 28 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 $180.00 short call and a strike $190.00 long call offers a potential 6.16% return on risk over the next 28 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $180.00 by expiration. The full premium credit of $0.58 would be kept by the premium seller. The risk of $9.42 would be incurred if the stock rose above the $190.00 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 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

McDonald’s helps boost Cass Commercial’s profit 35 percent
Wed, 13 Feb 2019 17:00:16 +0000
Franchise restaurant lending, principally for McDonald’s, helped serve up a 35 percent increase in profit at Cass Commercial Bank in 2018.

The World's 10 Biggest Restaurant Companies
Wed, 13 Feb 2019 00:18:17 +0000
The world's 10 biggest restaurant companies, arranged by market capitalization – from McDonald's to Brinker International – are mostly chain operations.

McDonald's, Yum! and Dunkin' Among Fast Food Franchises Rated Buys
Tue, 12 Feb 2019 16:24:00 +0000
Fast-food stocks have to deal with issues of restaurant improvement, menu modification, and customer retention in a highly competitive environment. The 68 cents reported beat the estimate of 62 cents by almost 10%, marking the fourth quarter in a row that the company has beaten an EPS forecast. This was the second quarter of the last four that DNKN has missed on revenues.

Here's how companies can expand their digital presence
Tue, 12 Feb 2019 13:50:06 +0000
Nigel Vaz, CEO of Publicis Sapient, joins "Squawk Box" to break down exactly how he helps businesses digitize their customer experience and why it's the future of marketing and customer relations.

Starbucks: A Stock So Strong Even Its Founder Can’t Kill It
Tue, 12 Feb 2019 10:00:33 +0000
Howard Schultz may be under the biggest presidential delusion since Herbert Hoover's re-election run — but that doesn't mean the company he founded is suffering. * 10 Stocks That Every 20-Year-Old Should Buy Howard SchultzSince the start of the year, Starbucks (NASDAQ:SBUX) stock is up 7.4%. Shares that were trading near $50 in August are now trading near $70.InvestorPlace – Stock Market News, Stock Advice & Trading TipsIn its most recent quarterly report, sales were up 9% year over year, comparable store sales were up 4%, operating margins were 22% in the Americas and, in China, sales were up 18%. Net income came in at $760.6 million, 61 cents per share, on revenue of $6.63 billion. Other than uniting voters against him, this may be Schultz' most impressive achievement. Since stepping down as SBUX executive chairman last summer, the company hasn't missed him. A Stronger FranchiseIt's a stark contrast to Schultz' first retirement, in 2000, when he was forced to swoop in and rescue the company. He closed all stores for three hours to retrain the staff, then set a new strategy, clearing out the executive suite.This time, his long-term strategy of technology, geographic expansion, and huge Roastery stores seems to be working. CEO Kevin Johnson is a former Microsoft (NASDAQ:MSFT) executive and he has moved the company decisively away from the Schultz "personality cult" into a sustainable franchise whose China operations have even growth investors interested. Starbucks now has four women on its board, most recently COO Rosalind Brewer, and enough self-confidence to feel it can beat a Chinese Starbucks clone called Luckin, even while Luckin considers itself a U.S. IPO. This Should Not BeGiven the growing competition, Starbucks stock should not be doing this well.Coffee has been discovered by Wall Street to be as potent an ingredient as sugar — something you can buy for a few bucks per pound and get hundreds of dollars for in the form of finished drinks.Germany's Riemann family, through JAB Holding, has been buying up every non-Starbucks breakfast joint it can find, doing a partial spin-out of Keurig, as Keurig Dr. Pepper (NYSE:KDP), to bring public investors into the party. Brazil's 3G Capital bought Tim Horton's, the Canadian chain, as part of their Restaurant Brands International (NYSE:QSR).The woods are also still full of new coffee entrepreneurs and there are thousands of one-off stores, including many that have managed to extend their hours with beer, wine, and even music, in ways Starbucks failed at.Starbucks has changed America as no restaurant chain has since McDonald's (NYSE:MCD), and Schultz is the founder (even if he didn't found it).All this continues to fuel the fire of Starbucks bears, who insist the company is slowing down despite a lack of evidence. Goldman Sachs (NYSE:GS) downgraded Starbucks recently, with a price target lower than its February 8 opening bid of $69.14. The Bottom Line on Starbucks StockHoward Schultz is a divisive character, even in his hometown of Seattle. Like a figure in an Aaron Sorkin screenplay, he's a man convinced of his own righteousness, even while he appears out of step with the times.So while your barista insists "Howard doesn't work here anymore", take a moment to admire what he built, and what continues to build there. Starbucks packaged coffee products now have global distribution, and I have been guilty of pounding the table, for the stock during its recent run-up. At its current price Starbucks is fully valued, at nearly 31 times trailing earnings. But the dividend is fully backed by profits and pays 2.1%. It has risen 50% over the last five years. * 7 Forever Stocks to Buy for Long-Term Gains You may be criticized if you bet on "Schultz for President," but you're not stupid to own this stock.Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in MSFT. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Fundamentally Sound Dividend Stocks to Buy * 5 Reasons Reeling FAANG Stocks Won't Deliver Big Returns * 3 Reasons Canopy Growth Could Burn You Compare Brokers The post Starbucks: A Stock So Strong Even Its Founder Cana€™t Kill It appeared first on InvestorPlace.

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