I picked up some feb calls, if you recall what happened in the summer when Canada had one cow the had the diesease MCD dipped and started to rebound. I see this as a buy the bad news reversal play. Now saying that if there is more cows found with mad cow then I would agree with your short. I have a stop of 22.80 on mcd & target to sell my calls when it hits 24.95.
well at this point I hesitate to predict or formulate an opinion, but MCD is coming off all time highs and traded about 5 times ave volume on Weds (which is light day) and ticked down 5% so, as a trend follower, I am placing a Sell Stop at 23.00 lets see what happens when everyone is done with X-Mas and normal trading resumes at market