McDonald’s One-Week ATM Call Implied Volatility Hits 85th Percentile at 21%
McDonald’s one-week at-the-money call implied volatility reached 21%, placing it in the top 15% of its 52-week range. No stocks currently trade with one-week ATM IVs in the bottom 20% percentile, leaving traders without any ‘cheap’ options to buy.
1. Market Uncertainty Lifts Option Volatility
The war in Iran has increased market uncertainty, driving up implied volatility across equity options. As a result, one-week at-the-money options for major stocks, including McDonald’s, have seen significant IV gains compared to their historical ranges.
2. McDonald’s IV at 85th Percentile
McDonald’s one-week ATM call implied volatility reached 21%, placing it in the top 15% of its 52-week readings. This marks a sharp rise from mid-range levels and highlights elevated cost for short-term bullish trades.
3. No Cheap Weekly Options Available
Using 52-week IV percentile rankings, no stocks currently fall into the bottom 20% bracket for one-week ATM options. Traders seeking cost-effective option plays must look beyond weekly expirations or adjust strategies given the lack of ‘cheap’ contracts.