11/27/2009 9:22 AM
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BKC
Call trading was brisk on Burger King (BKC) on Wednesday, as more than 6,200 call contracts changed hands. This volume was more than 12 times the equity's average daily trading volume. Furthermore, it appears that 76% of the volume changed hands at the ask price, indicating that these positions were most likely purchased.
The December 17.50 call was the most active, as it added approximately 5,000 new positions, pushing the open interest to 7,875 contracts. This strike is now the site of peak front-month call open interest.
In addition, the equity's Schaeffer's put/call open interest plummeted from 1.12 in the 91st percentile rank to 0.51 in the 10th annual percentile rank. This percentile rank indicates that investors have been more optimistic toward the shares only 10% of the time during the past 12 months.
Prior to Wednesday's action, traders had shown a preference for puts. The International Securities Exchange (ISE) reported that 3.76 puts had been purchased to open for every one call purchased to open during the past 10 trading sessions. This ratio of puts to calls is higher than 93% of all those taken during the past year.
This surge in call trading comes as the shares of BKC remain trapped in a trading range between support at the 16 level and resistance in the 18.50 area. The security has shed more than 25% since the beginning of the year.
-posted by Jocelynn Drake
11/27/2009 9:22 AM
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