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Fast Money 360: McDonald's

With shares of McDonald’s down about 5% over the past 3 months, how should you game this stock into – and in the wake of – earnings.

Seems like a good time for Fast Money 360.

Find out what fundamentals, technicals and insights from the options world all suggest lie ahead for this stock.

FUNDAMENTALS

Susquehanna Financial Analyst Rachael Rothman is bullish, very bullish.

“We are a buyer of McDonald’s on every trade. … We continue to believe that it is a core holding for 2011,” she says.

In a nutshell she likes the stock because McDonald’s continues to trounce a lot of the competition. ”It is certainly a must own given that it is a profitable market-share gainer in an overall segment that has been in decline,” she explains.

TECHNICALS

Patterns in the charts also look bullish to Oppenheimer’s Carter Worth.

“I’m a buyer of McDonald’s going into earnings,” he says.

He thinks the slide from $81 all the way down to $72 takes the stock down to a level of support.

”Whatever is going to be said we are buyers into the news, we think it bounces,” he says.

OPTIONS

Scott Nations sees the situation a little differently. He thinks the options action suggests trouble ahead.

“While I would generally be a buyer of the company, I would be a little hands off into earnings,” he says.

Nations cites what he interprets to be protective put buying.

OTHER INSIGHTS

And in case you’re wondering Patty Edwards thinks McDonald’s should be a long-term hold in any portfolio. Steve Grasso is a buyer, too. However at $77.50 he’s out. And Pete Najarian thinks Yum! may be a better play for investors looking for beta.

What do you think? We want to know!

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DRILLING FOR PROFITS

The traders are keeping a close eye on Schlumberger after the world's largest oilfields company beat on earnings and revenue. The stock enjoyed an early pop but then reversed mid-day.

What should you make of it?

I’m a buyer of the space broadly, says Patty Edwards. But, I’d play it long the OIH .

I’d wait for a better entry point, counters Steve Grasso. I think it will come.

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EAR TO THE WALL: PEP BOYS

Shares of Pep Boys spiked Friday after reports surfaced that the company may be exploring a possible sale.

What should you make of it?

The chatter surfaced a couple years ago, too, and it just didn’t happen, says Patty Edwards. If you want to play the space I’d do it with AutoZone.

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SOFTS SURGE

Let's get to a tick by tick - the soft commodities continued to surge Friday , with coffee cotton and lumber among the best performers.

What’s the trade?

I’m bullish the softs and I'd play it long the ag ETFs DBA or JJG , says Brian Kelly.

I’m playing the space long Louisiana-Pacific, reminds Steve Grasso. And I’m staying long but I suspect we’re going to see a pullback. If you’re not already long I’d wait for a pullback.

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Trader disclosure: On Jan. 21, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian owns (BBY) calls; Pete Najarian owns (F) calls and bonds; Pete Najarian owns (GM) call spreads; Pete Najarian owns (AXP); Pete Najarian owns (V) call spreads; Pete Najarian owns (HPQ) call spreads; Pete Najarian owns (YHOO); Pete Najarian owns (MSFT); Pete Najarian owns (MS); Pete Najarian owns (JPM) call spreads; Pete Najarian owns (C); Pete Najarian owns (BAC) call spreads; Pete Najarian owns (GE); Pete Najarian owns (MCD) call spreads; Pete Najarian owns (GE); Grasso owns (ASTM); Grasso owns (BA); Grasso owns (BAC); Grasso owns (BWC); Grasso owns (C); Grasso owns (CSCO); Grasso owns (JPM); Grasso owns (LIT); Grasso owns (LPX); Grasso owns (MHY); Grasso owns (NDAQ); Grasso owns (PFE); Grasso owns (PRST); Grasso owns (S)

BRIAN KELLY
Accounts Managed By Kanundrum Capital Own The Euro
Accounts Managed By Kanundrum Capital Own (DBA)
Accounts Managed By Kanundrum Capital Own (JJG)
Accounts Managed By Kanundrum Capital Own (MCP)
Accounts Managed By Kanundrum Capital Own (MON)
Accounts Managed By Kanundrum Capital Own (MS)
Accounts Managed By Kanundrum Capital Own (TBT)
Accounts Managed By Kanundrum Capital Own (TAN)
Accounts Managed By Kanundrum Capital Own (YGE)
Accounts Managed By Kanundrum Capital Own (SDS)
Accounts Managed By Kanundrum Capital Own (VXX)
Accounts Managed By Kanundrum Capital Own (VIX) calls
Accounts Managed By Kanundrum Capital Are Short The Yen
Accounts Managed By Kanundrum Capital Are Short USD

PATTY EDWARDS
Edwards owns (SPY) for clients
Edwards owns (POT) for clients
Edwards owns (SLB) for clients
Edwards owns (GLD) for clients
Edwards owns (SLV) for clients
Edwards owns (BA) for clients
Edwards owns (AMZN) for clients
Edwards owns (F) for clients
Edwards owns (V) for clients
Edwards owns (JNJ) for clients
Edwards owns (AAPL) for clients
Edwards owns (GOOG) for clients
Edwards owns (ORCL) for clients
Edwards owns (MSFT) for clients
Edwards owns (GS) for clients
Edwards owns (C) for clients
Edwards owns (TGT) for clients
Edwards owns (MCD) for clients
Edwards owns (GE) for clients
Edwards owns (ARW) for clients

STEVE GRASSO
Stuart Frankel & Co and it’s partners own (AAPL)
Stuart Frankel & Co and it’s partners own (ABX)
Stuart Frankel & Co and it’s partners own (CSCO)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (NEM)
Stuart Frankel & Co and it’s partners own (NWS.A)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PDE)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (RDC)
Stuart Frankel & Co and it’s partners own (S)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners own (UAL)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners are short (QQQQ)
Stuart Frankel & Co and it’s partners are short (AAPL)

DENNIS GARTMAN
Funds Managed by Dennis Gartman are short Yen
Funds Managed by Dennis Gartman are short Sterling
Funds Managed by Dennis Gartman are long Gold
Funds Managed by Dennis Gartman are long silver
Funds Managed by Dennis Gartman are long Natural Gas
Funds Managed by Dennis Gartman are long the Swiss Franc
Funds Managed by Dennis Gartman are short the Euro

JASON TRENNERT
Trennert Owns (EVR)

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