StockTwits Trending Alert: Trading recent interest in MCDONALD’S $MCD

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Quantchabot has detected a promising Bear Put Spread trade opportunity for MCDONALD’S (MCD) for the 5-Jun-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MCD was recently trading at $184.41 and has an implied volatility of 29.77% for this period. Based on an analysis of the options available for MCD expiring on 5-Jun-2020, there is a 38.93% likelihood that the underlying will close within the analyzed range of $173.21-$184.41 at expiration. In this scenario, the average linear return for the trade would be 66.33%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, MCDONALD’S was recently trending, indicating that breaking news and/or market activity has significantly impacted sentiment toward the stock. This movement can be interpretted as a sign of more near-term price movement for the underlying.

Trade approach: The recent sentiment change in MCD on StockTwits appears to be moderately negative, indicating that the stock is likely to follow in that direction for investors trading on sentiment. As a result, a bearish strategy could prove effective if the sentiment ultimately turns out to drive trading.

Upside potential: Using this bearish strategy, the trade would be profitable if MCDONALD’S closed at or below $184.58 on 5-Jun-2020. Based on our analysis, there is a 55.45% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.