Ambitious Trader Strangles Buffalo Wild Wings Ahead of Earnings

Filed under: Major Movement, Earnings Reports, Options

Humble restaurant chain Buffalo Wild Wings (BWLD) is scheduled to release its fourth-quarter earnings report after the market closes on Thursday, Feb. 11. Ahead of the event, analysts surveyed by Thomson Reuters are looking for a profit of 51 cents per share, up from 43 cents per share in the year-ago quarter. BWLD has an impressive history in the earnings spotlight, having matched or exceeded Wall Street's consensus expectations in each of the previous four reporting periods.

Judging by option activity ahead of the event, at least one speculator is looking for a major post-earnings move from the wing king. During the course of Wednesday's trading, a long strangle was opened at BWLD's February 50 call and February 45 put. Specifically, both of these options saw a block of 90 contracts cross the tape in afternoon trading, with both transactions taking place narrowly above the respective ask prices -- suggesting all of these contracts were purchased.

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Ambitious Trader Strangles Buffalo Wild Wings Ahead of Earnings originally appeared on BloggingStocks on Wed, 10 Feb 2010 18:30:00 EST. Please see our terms for use of feeds.

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