MCD's franchise model creates predictable earnings and low IV. Options are cheap to buy and modest to sell — ideal for conservative income strategies.

MCD Options Characteristics

Avg Daily Volume

100K+ contracts

Typical Spread

$0.05-0.10

Typical IV Rank

12-25%

Expirations

Weekly, Monthly, Quarterly, LEAPS

Price Range

$270-310

Correlation

Moderate correlation with consumer staples and defensive stocks

Best Strategies for MCD

Covered Calls

Income on top of 2%+ dividend

LEAPS Calls

Cheap long-term exposure due to low IV

Cash-Secured Puts

Conservative entry with premium income

Collar Strategy

Protect retirement position

Bull Put Spreads

Conservative bullish income

Franchise Model Stability

McDonald's franchise model generates predictable cash flows. Options IV is consistently low, creating affordable LEAPS and steady (if modest) covered call income.

MCD Options FAQ

Is McDonald's good for covered calls?

MCD is solid for conservative covered calls. IV is low so premium is modest, but win rates are high due to the stock's stability. Combined with the 2%+ dividend, total yield can reach 5-8% annually.

How does MCD perform in recessions?

MCD is highly defensive — consumers trade down to fast food during economic stress. This makes it a relative outperformer in downturns and a natural hedge for growth-heavy portfolios.