Today I came across an Iron Condor initiated using MCD options expiring Friday and in anticipation of tomorrow morning's earnings announcement. Click on the image to watch today's episode and then read below for some more color on this neutral earnings play.
The colorful payout diagram below notes the short strikes were 3.5% higher and 3.9% lower than where MCD was trading. The average move for MCD stock is up or down just over 2% in reaction to earnings (based on the last 12 quarters). Based on that figure this trader looks safe, but MCD has moved up over 8% and down about 4.5% in reaction to earnings in the recent past.