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MCD Covered Call Analysis: Proceed With Caution Weak · 30/100
MCD · $305.68 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
This strategy is NOT recommended for MCD right now
Score 30/100. The technical signals do not support selling covered calls on MCD at this time.
RSI at 35 — oversold, not ideal for selling calls. IV -40% vs avg — premiums below average, less income. MACD bearish — stock may keep falling (risk).
Check back when conditions improve, or consider a different strategy.
Quick Take
MCD is trading at $305.68 with RSI at 35 (oversold territory). Options IV is at 26% — 40% below its 30-day average of 43%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
35
IV Today
25.6%
IV vs 30d Avg
-41%
MACD
bearish
ADX
25
MFI
43
The Setup
MCD Covered Call
LONG STOCK
100 shares @ $305.68
SHORT CALL
$330 Jun '26 · $2.41/sh
Net Cost
$30,327
Max Profit
+$2,673
Break-even
$303.27
Projected P&L at Target
+$2,673
(8.8%)
P&L at Expiry
P&L Scenarios
What happens at different MCD prices by expiry:
| MCD Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $245 (-20%) | -$5,874 | -$5,873 | -$5,873 | -$5,873 |
| $260 (-15%) | -$4,352 | -$4,345 | -$4,344 | -$4,344 |
| $275 (-10%) | -$2,857 | -$2,827 | -$2,816 | -$2,816 |
| $290 (-5%) | -$1,441 | -$1,351 | -$1,295 | -$1,287 |
| $300 (-2%) | -$664 | -$523 | -$406 | -$370 |
| $306 (0%) ← now | -$189 | -$11 | +$160 | +$241 |
| $312 (+2%) | +$245 | +$458 | +$687 | +$852 |
| $321 (+5%) | +$813 | +$1,066 | +$1,371 | +$1,769 |
| $330 (+8%) ← target | +$1,268 | +$1,541 | +$1,882 | +$2,673 |
| $336 (+10%) | +$1,523 | +$1,797 | +$2,134 | +$2,673 |
| $352 (+15%) | +$1,965 | +$2,205 | +$2,464 | +$2,673 |
| $367 (+20%) | +$2,207 | +$2,392 | +$2,559 | +$2,673 |
Why This Strategy, Why Now
- RSI at 35 — oversold, not ideal for selling calls
- IV -40% vs avg — premiums below average, less income
- MACD bearish — stock may keep falling (risk)
- ADX at 25 — moderate trend
- No squeeze — no imminent breakout
Key Risks
The main risk is missing upside if MCD rallies sharply. The premium received ($X per share) provides a buffer, but gains above the strike are forfeited.