Buy Alert: April 24, 2014

| April 24, 2014

Buy Alert:  April 24, 2014

 

Trade Details

Buy Dunkin’ Brands (DNKN) June $47.50 Calls for $1.40 or better

 

Why?

It’s a big week for earnings, but sometimes the companies not making the headlines are the ones providing the best trade opportunities.   For instance, Dunkin’ Brands (DNKN) is down roughly 1% today after missing first quarter estimates.  And, it’s providing us with a great call-buying opportunity.

You see, DNKN – which owns Dunkin’ Donuts and Baskin-Robbins – missed estimates because of the bad weather.  However, the company didn’t lower its full-year predictions for store growth or profits.  That’s clearly a sign the setback was temporary.  Now that the bad weather is behind us, there are plenty of reasons to believe DNKN will continue on its path of solid growth.

I believe the stock will hold above its 200-day moving average and climb back towards the 50-day moving average.  Let’s buy the June ATM calls here.

 

Recent Activity

Dunkin' Brands

 

Category: OTW Buy Alerts

About the Author ()

Marcus Haber is the co-editor of Options Trading Research and boasts well over a decade of real-life options experience. Learning from some of the biggest names in the business, Marcus has served as an Options Strategist for a number of firms and was also appointed to the Options Advsiory Board with Pershing, a branch of the Bank of New York.
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