Traders Target McDonald's Stock After Revenue Miss

MCD is on track for its worst single-day percentage loss since May

Digital Content Manager
Feb 5, 2024 at 10:32 AM
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Fast food giant McDonald's Corp (NYSE:MCD) announced a fourth-quarter earnings win earlier, but missed revenue expectations as conflict in the Middle East squeezed sales.

The security is down 3.1% to trade at $287.73 at last check -- on track for for its worst single-day percentage loss since May -- and hit to its lowest level since December. MCD boasts a 8.9% year-over-year lead with long-term support at the 60-day moving average, though, and just scored a Jan. 22 all-time high of $302.39.

Options volume is today running at five times the average intraday amount, with 13,000 calls and 7,665 have traded so far. The most active contract is the 2/9 295-strike call, where new positions are being opened.

Short-term options traders have been more bearish than usual. This is per McDonald's stock's Schaeffer's put/call open interest ratio (SOIR) of 1.35, which stands in the 82nd percentile of annual readings.

Options look like an excellent way to weigh in on MCD's next moves, according to the stock's elevated Schaeffer's Volatility Scorecard (SVS) of 78 out of 100. This means MCD typically outperforms options traders' volatility expectations. 


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