Shares of Yum Brands have been on fire over the past month and a half. But one big options trader thinks they are set to go even higher.
In a massive trade Tuesday, one firm bet that shares of the fast food company will rise as high as $92.50 by January, a big jump from the day's closing price of $78.36, especially considering that the stock is up 15 percent since the middle of October.
Specifically, this trader bought 2,500 January 67.50/77.50/92.50 call spread risk reversals for a total of $1.35 per share. That means the trader bought the January 92.5-strike calls for $6.10, and financed the purchase by selling the January 92.50-strike calls for $1.50 and the January 67.50-strike puts for $3.25.