Wendy's Stock: What Options Are Saying

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.

CNBC/OptionMonster Trading School:


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.

Fast Food Rivals:


Burger King

Yum! Brands



David Russell is a reporter and writer for OptionMonster.