Market News

November 22, 2016  Tue 6:14 AM CT

An investor is upping the ante in a bullish play on Dunkin' Brands.

OptionMonster's tracking program detected the sale of 1,500 December 52.50 calls for $1.25 and the purchase of 2,500 January 55 calls for $0.98 yesterday. Volume was below open interest in the December contracts, indicating that a bullish position was rolled a month later to a higher strike and increased in size.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

DNKN rose 3.83 percent to $52.85 yesterday and is up 5 percent in the last three months. The coffee-and-doughnut chain is expected to report earnings before the market opens on Feb. 2.

Overall option volume was 6 times greater than average in the name yesterday.

News Archives

Education & Strategy

From the AP Archives: If It's Not There...

I have talked at great length about the fact that as an individual investor, you do not have to be in the market at all times.

More education articles »