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, 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
Burger King
Yum! Brands
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David Russell is a reporter and writer for OptionMonster.
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