Investors in McDonald’s Corp (NASDAQ: MCD) gained access to new options today, set to expire in March 2027. Two noteworthy contracts are available: a put at a $320.00 strike price, currently bid at $20.25, allowing a potential cost basis of $299.75 per share after premium; and a call at a $340.00 strike price with a bid of $23.45, which could yield a total return of 10.72% if shares are called away.
The $320.00 put represents a 3% discount to McDonald’s current trading price of $328.27, with a 62% probability of expiring worthless, offering a potential annualized return of 6.28%. Conversely, the covered call at $340.00 carries a 4% premium, with a 51% chance of also expiring worthless, yielding an annualized return of 7.09% if it does. The implied volatility for both contracts is approximately 22%, while the actual trailing volatility is calculated at 17%.
