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1,500 Earnings Expiration Calls Trade in Restaurant Brands International Inc. (Symbol: QSR)

1,500 Earnings Expiration Calls Trade in Restaurant Brands International Inc. (Symbol: QSR)

OptionWatch:

Posted October 23, 2024 at 10:00 am

Jeff Praissman
Interactive Brokers

This morning 1,500 Restaurant Brands International Inc. (Symbol: QSR) November 15 ’24 72.5 calls traded in small lots. When a large volume trades in small lots it may be a signal that many small retail investors are participating in the trade versus a large lot trade that is usually an institutional trader or investor. From the various trade prices and the NBBO at the time of the trades it looks like investors are selling the calls as the prices are slightly above the bids posted at the time of the trades.

The QSR 72.5 calls are a 58 delta and are considered at-the-money. QSR is expected to release earnings on November 5th prior to expiration. The open interest this morning was approximately 400 contracts, so these are opening trades. These calls are too high of a delta to be used for a traditional covered call strategy so the investors may just be trying to take advantage of the raised implied volatility that usually occurs in earnings expirations.

QSR is currently trading at $73.35. QSR has a 52-week high of $81.98 and a 52-week low of $63.49.

QSR is currently trading at $73.35. QSR has a 52-week high of $81.98 and a 52-week low of $63.49.

Source: IBKR TWS. Past performance is not indicative of future results

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