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Current DateTime: 07:40:57 23 Nov 2009
LinksList Documentid: 30328029
Wendy's Stock: What Options Are Saying
Published: Wednesday, 22 Jul 2009 | 2:57 PM ET
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By: David Russell
writer, OptionMonster

Wendy's/Arby's Group is up 21 percent in the last month, and at least one trader expects it to keep climbing through its next earnings report in early August.

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CNBC/OptionMonster Trading School:

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OptionMonster's tracking systems detected the purchase of 5,850 September 5 calls at rising prices of $0.25 and $0.30. Volume was more than 290 times open interest, indicating new money was flowing into long positions in the name.

WEN stock [WEN  Loading...      ()   ], which is down 3.2 percent to $4.54 in midday trading, must climb 16 percent by expiration for the calls purchased today to turn a profit.

The restaurant chain, down 70 percent since the start of 2007, will report second quarter results on Aug. 6. The stock fell 9 percent after its same-store sales disappointed investors during the last report on May 7.

Today's buying pushed volume in the name to eight times average, with calls outnumbering puts by 426 to 1.

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Fast Food Rivals:

McDonald's [MCD  Loading...      ()   ]

Burger King [BKC  Loading...      ()   ]

Yum! Brands [YUM  Loading...      ()   ]

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David Russell is a reporter and writer for OptionMonster.

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Current DateTime: 06:27:23 23 Nov 2009
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