Options Trades – Darden Restaurants, Inc. (NYSE:DRI) Calls and
Buffalo Wild Wings (NASDAQ:BWLD) Calls 
Tuesday, January 13, 2015

**OPTIONS TRADE 1: Buy the DRI Apr 2015 60.000 call (DRI150417C00060000) at or under $2.70, good for the day. Place a protective stop loss at $1.05 and a pre-determined sell at $4.50.

**OPTIONS TRADE 2: Buy the BWLD Mar 2015 200.000 call (BWLD150320C00200000) at or under $4.00, good for the day. Place a protective stop loss at $1.60 and a pre-determined sell at $7.00.

by Ian Harvey

January 13, 2015

Introduction

Following on from last Friday’s recommendation, here are two more companies from the restaurant sector, Darden Restaurants, Inc. (NYSE:DRI) and Buffalo Wild Wings (NASDAQ:BWLD), that have seen some positive movement lately – as mentioned previously due greatly to the decrease in gas prices. However, once again, these companies are not getting the attention attributed to the price action they have experienced, therefore providing plenty of future potential sideline cash to fuel additional gains.





1. Darden Restaurants, Inc. (NYSE: DRI)

**OPTIONS TRADE 1: Buy the DRI Apr 2015 60.000 call (DRI150417C00060000) at or under $2.70, good for the day. Place a protective stop loss at $1.05 and a pre-determined sell at $4.50.

Darden Restaurants, Inc. tagged a record peak of $60.96 last week, after Morgan Stanley lifted its price target by $6 to $62, and thanks to a fresh "buy" rating from Citigroup analyst Gregory Badishkanian. There could be more where those came from, as more than half the analysts following outperforming DRI maintain "hold" or worse opinions, and the consensus 12-month price target sits at a paltry $56.61.

Short interest represents more than six sessions' worth of pent-up buying demand, at the equity's average pace of trading, and short-term options traders remain skeptical. The security's put/call open interest ratio of 1.50 sits just 3 percentage points from a 12-month peak, suggesting near-term traders have rarely been more put-heavy during the past year. A change of heart among short sellers or the options crowd could mean more upside for high-flying Darden Restaurants, Inc.





2. Buffalo Wild Wings (NASDAQ: BWLD)

**OPTIONS TRADE 2: Buy the BWLD Mar 2015 200.000 call (BWLD150320C00200000) at or under $4.00, good for the day. Place a protective stop loss at $1.60 and a pre-determined sell at $7.00.

Moving on to Buffalo Wild Wings, which also hit a new all-time high last week of $187.02, after Morgan Stanley boosted its price target to $178 from $144, is another great candidate for more stock price increase. Still, the revised target represents a discount to BWLD's new high, as does the security's consensus 12-month price target of $169.72. In other words, there's still plenty of room on the bullish bandwagon, and additional price-target hikes could bolster BWLD even further.

Meanwhile, more than 12% of BWLD's float is sold short, and would take about seven sessions to buy back, at the stock's average pace of trading. A short-squeeze situation could also propel Buffalo Wild Wings to higher highs, helping the stock add to its year-over-year gain of roughly 23%.

Conclusion

Therefore, based on the facts above the following options trade is recommended…..


**OPTIONS TRADE 1: Buy the DRI Apr 2015 60.000 call (DRI150417C00060000) at or under $2.70, good for the day. Place a protective stop loss at $1.05 and a pre-determined sell at $4.50.

**OPTIONS TRADE 2: Buy the BWLD Mar 2015 200.000 call (BWLD150320C00200000) at or under $4.00, good for the day. Place a protective stop loss at $1.60 and a pre-determined sell at $7.00.



”Success is simple. Do what's right, the right way, at the right time.”


Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.



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