McDonald’s (MCD) Offering Possible 14.55% Return Over the Next 35 Calendar Days

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McDonald’s’s most recent trend suggests a bearish bias. One trading opportunity on McDonald’s is a Bear Call Spread using a strike $220.00 short call and a strike $240.00 long call offers a potential 14.55% return on risk over the next 35 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $220.00 by expiration. The full premium credit of $2.54 would be kept by the premium seller. The risk of $17.46 would be incurred if the stock rose above the $240.00 long call 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 50.35 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

Better Buy: McDonald’s vs. BJ’s Restaurants
Wed, 13 Jan 2021 13:50:00 +0000
2020 was a challenging year for restaurant chains like McDonald’s (NYSE: MCD) and BJ’s Restaurants (NASDAQ: BJRI). Investors seem to believe both restaurants will rebound after the pandemic ends: Over the past 12 months, McDonald’s stock has risen about 3%, while BJ’s stock advanced 15%. McDonald’s is the world’s largest fast food chain with a market cap of almost $160 billion.

McDonald’s (MCD) Stock Sinks As Market Gains: What You Should Know
Tue, 12 Jan 2021 22:50:10 +0000
In the latest trading session, McDonald’s (MCD) closed at $211.60, marking a -1.23% move from the previous day.

Is McDonald’s Stock A Buy? Dow Jones Giant Gets Rare Rating From Pickiest Analyst
Mon, 11 Jan 2021 17:14:24 +0000
McDonald’s has retreated despite a huge sales rebound. With a chicken sandwich coming in February, should you buy the Dow Jones giant?

9 Dow Stocks With the Most Upside Potential, According to Wall Street
Sun, 10 Jan 2021 11:05:00 +0000
In May, the iconic Dow Jones Industrial Average (DJINDICES: ^DJI) will celebrate its 125th anniversary since its inception. According to Wall Street, the Dow Jones is also a sanctuary for growth and value. Perhaps unsurprisingly, the Dow stock with the most expected upside is cloud-based customer relationship management (CRM) software provider salesforce.com (NYSE: CRM).

Higher Rates Could Boost Schwab Shares
Sat, 09 Jan 2021 01:30:00 +0000
Interest rates are spiking after the somewhat surprising outcome from the Georgia Senate runoff elections. Schwab is a top pick of ours for 2021. For a 25 bp increase to longer-term interest rates only (i.e., yield curve steepening), we estimate accretion of 3% in earnings per share.

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