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McDonald's Options Activity Suggests Whales Betting on Upside

A recent surge in options trading activity on McDonald's (NYSE: MCD) suggests that institutional investors, commonly referred to as "whales," are betting on a significant upside move for the fast-food giant.

According to data from Benzinga Pro, options trading volume on MCD has increased significantly over the past week, with the majority of the activity focused on buying calls and selling puts. This type of trading activity is often a sign that institutional investors are positioning themselves for a potential rally in the stock.

One of the most notable trades was a massive call spread in the April 15, 2025, expiration cycle. The trade involved buying 20,000 calls at the $230 strike price and selling 20,000 calls at the $250 strike price. This type of trade is often used by institutions to hedge their existing positions or to express their bullish sentiment on a stock.

Another notable trade was a large put spread in the March 17, 2025, expiration cycle. The trade involved buying 10,000 puts at the $220 strike price and selling 10,000 puts at the $200 strike price. This type of trade is often used by institutions to hedge their existing positions or to express their bearish sentiment on a stock.

The increased options trading activity on MCD comes as the company continues to face challenges in the form of rising labor costs, increased competition, and a slowing global economy. However, many analysts remain bullish on the company's prospects, citing its strong brand recognition, global reach, and ability to adapt to changing consumer preferences.

In the near term, options traders are eyeing the company's upcoming earnings report, which is scheduled to be released on April 26. The report is expected to provide insight into the company's performance during the first quarter and set the stage for the remainder of the year.

Overall, the increased options trading activity on MCD suggests that institutional investors are betting on a significant upside move for the stock in the coming weeks and months. Whether or not this bet pays off remains to be seen, but one thing is certain: the options market is always a good place to look for insight into the market's sentiment and the potential for future price movements.