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Mike Khouw Sees Unusual Options Activity In Dunkin Brands


Mike Khouw said on CNBC's Options Action that 13 times average daily options volume was traded in Dunkin Brands Group Inc (NASDAQ: DNKN) on Wednesday.

He explained that a trader closed a position initiated in October, in the November 47.5 calls, before the stock gained approximately 7 percent and opened a new position in the December 50 calls. The trader paid a premium of $0.50, which sets breakeven for the trade at $50.50 or 5.5 percent from the current price.

Dunkin Brands gained 1.58 percent on Wednesday and closed at $48.09.


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Posted-In: CNBC Mike Khouw Options ActionOptions Markets Media