The security's recent rally is nothing short of impressive
Fast food giant McDonald’s Corp (NYSE:MCD) has been steadily rising on the charts, now up 14% year-to-date. Furthermore, the equity has reclaimed its 20-day moving average, a significant trendline in the past, and one which has captured multiple pullbacks since mid-July. With that being said, now looks like an opportune time to bet on MCD’s next leg higher.
Currently, MCD’s 12-month consensus price target of $224 sits right in line with current levels, which may spur some price-target hikes moving forward that could push the stock higher. There is room for some upgrades as well, with seven of the 23 analysts in coverage at a "hold" rating.
The amount of pessimism in the options pits could also arise as a potential tailwind moving forward. MCD’s 10-day put/call volume ratio sits in the 73rd percentile of its annual range, suggesting a higher-than-usual appetite for puts as of late.
What’s more, options traders are pricing in relatively low volatility expectations at the moment, per the stock’s Schaeffer’s Volatility Index (SVI) of 23%, which sits higher than just 13% of all other annual readings. Plus, MCD’s Schaeffer’s Volatility Scorecard (SVS) ranks at a relatively high 80 out of 100, meaning the equity has tended to exceed these expectations during the past year.
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