Investors expecting McDonald's to fall

Bearish McDonald's Corp. options volume rose to the highest level since January and the stock snapped a record seven-day winning streak on speculation that the restaurant chain will pare this year's 26 percent advance.

More than 30,500 puts to sell the stock changed hands, triple the four-week average and quadruple the volume of calls to buy, as of 3:10 p.m. in New York. Almost half of all options trades were concentrated in the January $75 puts, which rose 21 percent. The shares slipped 0.6 percent to $78.85 after rallying 2.4 percent in the prior seven trading days.

“Investors may be expecting a downside move in the stock between now and January expiration,” equity derivatives strategists at Bala Cynwyd, Pennsylvania-based Susquehanna International Group LLP wrote in a report to clients.

McDonald's, based in Oak Brook, hasn't closed below $75 since Oct. 4. It posted a 10 percent gain in third- quarter profit Oct. 21 after luring more customers with new menu items in the U.S. and expanded operations in Europe.

Implied volatility, the key gauge of option prices, for at- the-money McDonald's options expiring in 30 days has fallen by almost half from this year's peak in May to 14.89. That's near a record low of 13.65 on April 21.