McDonald’s (MCD) Offering Possible 6.27% Return Over the Next 36 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 $195.00 short put and a strike $185.00 long put offers a potential 6.27% return on risk over the next 36 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $195.00 by expiration. The full premium credit of $0.59 would be kept by the premium seller. The risk of $9.41 would be incurred if the stock dropped below the $185.00 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 79.67 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

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Tue, 14 Jan 2020 00:50:12 +0000
Starbucks shares have climbed 8% since it reported its Q4 2019 results at the end of October. Is now the time to buy SBUX stock for 2020?

Jim Cramer: More News Will Move More Stocks
Mon, 13 Jan 2020 19:01:00 +0000
What if there is new information? What if a stock is being propelled by actual events or changes? That's how I feel about a whole bunch of stocks this afternoon and I condone, if not approve, the moves.

U.S. makes it harder to sue corporations over franchise wage law violations
Mon, 13 Jan 2020 15:28:20 +0000
The U.S. Department of Labor on Sunday issued a rule that will make it more difficult to prove companies are liable for wage law violations of their contractors or franchisees. The rule takes effect in March, and should help franchisors who have been sued by workers in recent years for wage-law violations by franchisees. McDonald's Corp has faced a series of high-profile lawsuits claiming it is a so-called “joint employer” of franchise workers.

Starbucks vs McDonald's: Which is a Better Restaurant Stock?
Mon, 13 Jan 2020 13:48:01 +0000
Restaurant industry in 2020 is likely to benefit from partnerships with delivery channels.

Labor Department replaces Obama-era ‘joint employer’ standard
Mon, 13 Jan 2020 01:25:00 +0000
The Labor Department issued a final rule Sunday that clarifies when a worker is employed by more than one company, an issue that affects franchise businesses such as McDonald’s and firms that have outsourced services such as cleaning and maintenance.

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