Mike Khouw Sees Unusual Options Activity In Yum! Brands

Mike Khouw noticed an unusually large bullish options bet in

on Tuesday. Approximately 1.5 times average daily volume was traded and the January expiration was the most active. Somebody bought 2,500 contracts of the January 77.50 calls for $6.10 and sold 2,500 of the January 92.50 calls for $1.50. Additionally, this trader has sold the January 67.50 puts for $3.25. The trader paid net amount of $1.35 for the whole structure and this trade is going to be profitable if the stock trades above $78.85 at the expiration.

closed Tuesday at $78.36, so the price has to move only 0.70 percent for this trade to be profitable.