What’s the mean?
”I'd be taking profits and I’d get back in around $36 or $36.30. That should be support.”
Brian Stutland, Stutland Equities sees investors protecting themselves for disappointing earnings.
“An options trader sold 430,000 shares of stock at the same time he (or she) bought some April calls,” Stutland explains, interpreting the action as as a bet this investor “still wants to be able to participate on the up side. But he’s also defining his risk and getting that defined risk exposure in case Yum! earnings come off worse than expected.”
What’s the trade?
I’m bullish on Yum, says Guy Adami. Historically the stock sells off after earnings so I’m a buyer of the dip.
I think the valuation is attractive but it’s not pound-the-table cheap like it was, adds Karen Finerman.
If you’re looking to play the space I’d play McDonald’s instead, counsels Tim Seymour.
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Trader disclosure: On April 13, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (CSX) call spread; Najarian Owns (LVS) call spread; Najarian Owns (JPM) call spread; Najarian Owns (BAC) Calls; Najarian Owns (C) Calls; Najarian Owns (CSX) Call spread; Najarian Owns (LVS) Call spread; Najarian Owns (JPM) Calls; Najarian Owns (PCX); Najarian Owns (TXN) Calls; Najarian Owns (VLO) Calls; Najarian Owns (YUM) Call Spread; Adami Owns (INTC), (GS), (AGU), (MSFT), (NUE), (BTU), (C) ; Finerman's Firm Is Short (IJR), (MDY), (IWM), (IYR); Finerman's Firm Owns S&P Puts; Finerman's Firm Owns (JPM); Finerman Own (JPM) ; Finerman Owns (BAC); Finerman's Firm Owns (BAC); Finerman's Firm Owns (BAC) Preferred; Finerman's Firm Owns (TGT); Finerman's Firm Owns (WFC) Preferred; Finerman Owns (WFC) Preferred; Finerman Owns (YUM); Seymour Owns (CHL), (DRYS), (GE), (BAC), (EEM), (F), (INTC), (LVS), (SBUX); Seymour's Firm Owns (POT)
For Patty Edwards
Edwards Owns (JPM) for Clients
Edwards Owns (INTC) for Clients|
Edwards Owns (GS) for Clients
For Citi analyst Donald Fandetti
Citi Owns (AXP)
Citi Owns (COF)
Citi Has Provided Baking Services To (AXP)
Citi Has Provided Baking Services To (MA)
Citi Has Provided Baking Services To (COF)
Citi Expects To Receive Compensation from (AXP), (V), (MA)
Citi Has Acted As Manager or Co-Manager Of Offering of (AXP), (COF)
Citi has Managed a Securities Offering of (YUM)
Citi Has Received Compensation from (YUM)
(YUM) is an investment banking client of Citi
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