Monday November 9, 09:31 PM
STOCKS NEWS US-McDonald's traders close short put positions
Stocks on the move
Real (Frankfurt: BJU.F - news) -time Equity news
U.S. stock market report
1603 09Nov2009 Some McDonald's
traders close out short put positions
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McDonald's Corp said sales at established U.S. restaurants fell 0.1
percent in October, as expected, but its stock rose 1.49 percent to $62.64
after sales from the rest of the world buoyed overall results. The share run-up
allowed some players to 'line their pockets with profits by closing out short
put positions in the December contract,' said Andrew Wilkinson, market analyst
at Interactive Brokers Group. It appears one investor originally sold 10,000
puts short at the Dec $50 strike, receiving $2 apiece back on June 8, when
shares traded at $58.52. Today, the trader exited that position by buying back
all 10,000 puts for 6 cents each for a net profit of $1.94 million. A similar
strategy was employed at the Dec $52.50 strike. It looked like an investor sold
18,000 puts short at the higher strike, taking in about $2 in premium, back on
July 23. The trader bought back the puts for 9 cents apiece today since the
short sale was established. Net profits amounted to about $3.438 million, he
said..
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