Options Intelligence Report: McDonald's Corp. (MCD) & Biogen IDEC, Inc. (BIIB)
MCD ñ McDonaldís Corp.
Shares of the worldís largest restaurant chain are up 2.75% to a new 52-week high of $65.42 today after global sales increased 4.8% in the month of February. Same-store sales at restaurants based in Asia, the Middle East and Africa, aided by the Chinese New Year, rose 10.50% last month.
Bullish investors sold 5,200 puts at the June $62.5 strike for a premium of $1.48 per contract. Put-sellers retain the $1.48 premium as long as McDonaldís shares trade above $62.50 through expiration day in June. Traders expecting continued bullish movement in the price of the underlying stock purchased 5,000 calls at the $70 strike expiring in January 2011 for $1.84 apiece. Investors long the calls are positioned to profit above a breakeven price of $71.84 by expiration day in January.
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BIIB ñ Biogen IDEC, Inc.
Biotechnology company, Biogen IDEC, Inc., enticed bullish options players to the field today as shares surged more than 1.50% to a new 52-week high of $58.48. Investor demand for call options on the stock lifted options implied volatility on BIIB 36.60% to 34.94%. Traders exchanged more than 22 call options for each single put option in play thus far in the trading session.
Bullish individuals purchased more than 4,700 calls at the March $60 strike for an average premium of $0.51 apiece. Traders long the calls stand ready to accrue profits if Biogenís shares rally another 3.50% from todayís high of $58.48 to surpass the effective breakeven point on the calls at $60.51 by expiration. Optimistic trading spread to the higher April $65 strike where investors picked up 3,100 calls for an average premium of $0.83 each. Biogenís shares must increase 12.60% by April expiration in order for these call-buyers to accrue profits above the breakeven price of $65.83.
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