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
facebook X logo linkedin


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. 

 
 

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 C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI