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Options Trading Alert: McDonald’s NYSE:MCD

Profile: McDonald’s Corporation franchises and operates McDonald’s restaurants in the global restaurant industry. Its restaurants offer various food items, soft drinks, coffee, and other beverages. The company operates approximately 34,000 restaurants in 120 countries around the world. McDonald’s Corporation was founded in 1940 and is headquartered in Oak Brook, Illinois

Website: http://www.aboutmcdonalds.com

Headlines: McDonald’s Stock To Go Ex-dividend Wednesday

http://www.thestreet.com/story/11852436/1/mcdonalds-stock-to-go-ex-dividend-tomorrow-mcd.html?puc=yahoo&cm_ven=YAHOO

Options Trade Analysis

Tuesday saw MCD option contracts experience unusual call activity, 33.7 Calls traded for each Put contract yielding a 0.03 Put/Call Ratio PCR, there were 6,763 Put and 227,683 Calls traded during the trading session.

Options are useful tools for predicting the movement of the underlying stock.

Options can provide significant leverage if the stock moves in the right direction, but also end up worthless if it does not.

PCR statistics serve as a useful indicators of investment sentiment, indicating what experienced investors are doing in preparation for a move of an underlying stock.

The PCR is regarded as an indicator of investor sentiment, indicating what experienced participants are doing in preparation for a move of an underlying equity.

A high PCR suggests that the investor sentiment is Bearish and that investors are expecting the underlying stock price to fall.

A low PCR implies that the investor sentiment is Bullish and that investors are expecting the underlying stock price to rise.

Also, unusual volume provides reliable signals that the stock is expected to make a move.

Tuesday shares of McDonald’s gained 0.09 (+0.09%) to 96.23.

The daily trading range was: 96.05 – 96.57.

The 52 wk trading range is: 83.31 – 100.44

Tuesday’s volume: 6.4-M/shrs is more than the 3 month average volume of 5.4-M/shrs.

MCD shares are trading above their 20, 50 and 200-Day MAs.

Performance Metrics

Week Month Quarter Half Year Year

+2.39% +3.03% +12.79% +10.44% -1.43%
EPS: 5.36

PE: 17.94

RSI: 69.15

DiviYield: 3.08 3.20%

Next Earnings Date: 16 April 2013

Analysts Recommendation: Buy

1 yr Price Target Estimate: 106.00

LTNs Analysis for MCD: Overall Short Intermediate Long
Bullish (0.40) Neutral (0.23) Bullish (0.48) Very Bullish (0.50)

Recent CandleStick Analysis
Neutral
Date Candle
21 Feb 2013 Bullish Engulfing
20 Feb 2013 DOJI
Open Gaps
Direction Date Range
up 25 Feb 2013 95.25 to 95.26
up 2 Jan 2013 88.25 to 89.33
up 20 Nov 2012 85.05 to 85.1

Support and Resistance
Type Value Conf.
resist. 97.11 1
supp 95.95 2
supp 94.56 14
supp 92.73 2
supp 91.55 2
supp 90.71 3
supp 90.35 2
supp 89.98 3
supp 88.06 3
supp 87.42 2
supp 87.05 2
supp 86.71 2
supp 85.07 2
supp 84.05 2

Technical Indicators
Ind. Short Inter Long
EMA VBu VBu VBu
MACD VBu Bu VBu
RSI Bu
TDD Bu
Fibs Bu VBu VBu
Highs VBu N N
Lows N N N
Trends N VBu N
Stoch. VBe
VBu=Very Bullish, Bu=Bullish
N=Neutral
Be=Bearish, VBe=Very Bearish