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Unusual Options Activity In McDonald's

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Scott Nations spoke on CNBC's Options Action about unusually high options activity in McDonald's Corporation (NYSE: MCD). For some time, traders have been accumulating a long position in the February 95 call options and on Thursday they got their reward as the stock jumped to $93.27, or 5.06 percent on announcement of a change in management.

Instead of waiting for call options to expire, they decided to roll their positions because they don't believe that the stock is going to jump enough until the February expiration. They sold 37,000 of the February 95 calls for $0.32 and bought 37,000 of the March 95 calls for $0.91. They paid net $0.59 to extend their bullish position in McDonald's for another month.

 

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Posted-In: CNBC Options Action Scott NationsOptions Markets Media