McDonald's Agrees to Terms of Sale for Russian Business

Options traders have favored MCD puts in recent weeks

Deputy Editor
May 19, 2022 at 1:28 PM
facebook X logo linkedin

McDonald's Corp (NYSE:MCD) "Golden Arches" are leaving Russia. The blue-chip fast food giant is selling its business to its current licensee in the market, Alexander Govor. Financial terms of the sale were not released, though McDonald's said it expects a record noncash charge of $1.2 billion to $1.4 billion. Govor will acquire all existing locations in Russia, and rebrand them under a new name.

McDonald's stock is trading 0.2% lower following the announcement, last seen at $230.03. Clinging to a 0.3% year-over-year lead, MCD still sits nearly 14% below its 2022 breakeven mark. Despite the lackluster price action, the shares remain off their March 10 12-month low of $217.67, when MCD -- alongside sector peer PepsiCo (PEP) -- was contemplating suspending its operation in Russia in response to the country's unprovoked invasion of Ukraine.

Options traders have favored bearish bets in recent weeks, with MCD's 10-day put/call volume ratio of 1.97 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) standing higher than all other readings from the past year. Echoing this, the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.27 stands higher than 85% of readings from the last 12 months, indicating a clear put-biased amongst short-term options traders.

However, McDonald's stock ranks low on the Schaeffer's Volatility Scorecard (SVS), with a score of just 23 out of 100. This means the security has consistently realized lower volatility than its options have priced in, making it a potential premium-selling candidate



Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI