IB Options Brief: P.F. Chang's China Bistro, Inc. (PFCB)
Good Fortune For Some As Shares In P.F. Changís China Bistro Boom
PFCB ñ P.F. Changís China Bistro, Inc.
Options on the owner and operator of two restaurant chains, P.F. Changís China Bistro and Pei Wei Asian Diner, were more active than usual this week following the Companyís fourth-quarter earnings report ahead of the bell on Thursday. Shares are up sharply today on a number of analyst upgrades, trading higher by as much as 8.1% to touch an intraday peak of $38.50.
Traders that purchased calls on P.F. Changís yesterday despite the Companyís earnings miss, in some cases saw the value of their positions significantly increase overnight. It looks like investors purchased as many as 750 calls at the Mar. $35 strike yesterday for an average premium of $1.34 each. The calls today cost more than two times that amount, with the last traded price on the contracts up at $3.40.
Finally, options traders positioning for shares to extend gains purchased some 250 calls up at the Mar. $40 strike at a premium of $0.60 apiece. Investors long the $40 strike calls stand prepared to profit in the event that shares in P.F. Changís increase 7.0% over the current price of $37.95 to exceed the effective breakeven price of $40.60 at March expiration. PFCBís shares last traded above $40.60 back in July 2011.
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