Why Are Options Bullish on This Restaurant Chain?
P.F. Chang's China Bistro hit a 52-week high yesterday and attracted some bullish option trading ahead of its earnings report next week.
The restaurant chain rose 0.9 percent yesterday to close at $41.32, just a nickel below its high of $41.37 reached earlier in the session. The shares gapped down near $30 after the company's last earnings report in late October but have risen more than 60 percent since then.
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PFCB has averaged a total of 688 options traded each day for the last month, but yesterday 2,692 changed hands at the February 45 strike alone. The calls appear to have been bought mostly for $0.20 to $0.25, according to OptionMonster's real-time tracking systems.
For those trades to profit, P.F. Chang's stock would need to gain roughly 9.5 percent by the time the options expire on Feb. 19. The company is scheduled to release its fourth-quarter earnings results two days earlier, before the market opens on Feb. 17.
PFCB Competes With:
EAT = Brinker International
DRI = Darden Restaurants
DIN = DineEquity
DENN = Denny's
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Mike Yamamoto is an analyst and writer for OptionMonster.