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Mike Khouw Sees Unusual Options Activity In Dunkin Brands

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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