McDonald's Golden Arches are shining.
Shares of the fast-food giant are sitting just under all-time highs as the stock has soared nearly 20 from its Aug. 24 low. And according to one trader, McDonald's could continue to surge after reporting earnings later this week.
"Sentiment has shifted for McDonald's," Andrew Keene said Monday on CNBC's "Trading Nation." The stock, which has trailed the broader market over the past three years, was added to Credit Suisse's "U.S. Focus List" Monday morning and named one of the firm's "top investment ideas." The company's rollout of all-day breakfast has garnered it new attention.
But it's a combination of strong technicals and the implied options move that has Keene convinced shares could be at a record by the end of the week.
Looking at a short-term chart of McDonald's, Keene noted that once the stock broke through "that key $100 level," it has ripped to the upside. "I think we can get up to $109," he added.
Keene used the at-the-money put and call strike prices to come up with his price target. "Between now and the end of the week, the options market is implying a $3 move in the stock in either direction," said the founder of AlphaShark Trading. "That puts it at $108 on the upside or $102 on the downside. However, I think it's going higher."