McDonald’s Corp. (NYSE:MCD), together with its subsidiaries, operates as a foodservice retailer worldwide. It franchises and operates McDonald’s restaurants that offer various food items, soft drinks, coffee, desserts, snacks and many regional specialties that are tailored to the countries in which the restaurants are located.

As of June 30, 2011, the company operated 32,943 restaurants in 117 countries, including 26,598 franchised restaurants and 6,345 company-operated restaurants.

MCD was the best-performing stock of 2011, rising over 30% in 2011. Typically, money managers will buy the best performers and sell the worst performers going into year-end in an effort to mark up their portfolios. This week’s price action shows that the same money managers are beginning to unwind their mark-ups, with utilities (last year’s best sector performers) being the biggest losers in the early part of the week.

Given the overbought technical backdrop and relatively expensive P/E multiple, I think that MCD will be a relative underperformer over the next few months, as the nearly 20 multiple on the stock gets trimmed in to a more reasonable 16. This would put the stock at around $88 at June options expiration.

Based on MCD’s current market price of $99 and using a target price of $88, a target date of June 15, 2012, and $1,000 of investment capital, this is an excellent candidate for capturing some nice gains by buying the MCD June 97.50 Puts or buying the MCD June 97.50-87.50 put debit spread.

For the full details on this trade, visit TradingBlock.com, create a free Instant Login and try the TradeBuilder feature, where you’ll see several ways to trade this name. Best of all, you can see a potential profit-and-loss outline for each strategy.

Create your free login, and get access to these MCD option trading strategies by visiting the TradeBuilder here.