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Mike Khouw Sees Unusual Options Activity In McDonald's

Mike Khouw spoke on CNBC's Options Action about a bullish bet in McDonald's Corporation (NYSE: MCD) that caught his attention on Thursday.The trading activity in the name was 3 times higher than the daily average for options and the most active were the January 95 call options. A trader bought 39,000 contracts of the January 95 call options for $1.41, paying around $5.5 million for the premium. The breakeven for this trade is at $96.41, which means that the buyer is expecting to see McDonald's 3 percent higher at the January expiration.Khouw added that increased trading activity in the recent days has resulted in the increase of implied volatility for McDonald's options.

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