The largest overnight increase in weekly call open interest on YHOO was in the Sep 13 ’13 $29 strike calls after traders yesterday purchased around 1,000 contracts for an average premium of $0.42 each. Traders long the calls at $0.42 apiece are now holding contracts worth twice as much, with the last traded price on the $29 calls at $0.98 as of the time of this writing.
Overall options volume on Yahoo is roughly 130% of the stock’s average daily volume of around 44,000 contracts at present, with the call/put ratio hovering near 4.4.
WEN – Wendy’s Company – Traders feasted on Wendy’s front month calls this morning, with shares in the quick service restaurant operator rising 5.5% to a new 52-week high of $8.71 during the first half of the session. The stock was upgraded to ‘Buy’ from ‘Hold’ at Argus today.
Options players appear to have purchased around 2,600 of the Sep $8.0 strike calls, most at a premium of $0.60 per contract. In-the-money call buyers may profit at expiration if shares in the maker of the Frosty and pretzel bacon cheeseburgers top the breakeven price of $8.60.…
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