February 13, 2017 / 9:32 PM / 10 months ago

BUZZ-Popeyes: Speedy options trades taste big profit

** Some very speedy trades in Popeyes Louisiana Kitchen Inc’s options on Mon netted big gains after Popeyes shares jumped on news of takeover interest; shares closed up 7 pct

** Activity in Popeyes options jumped after a Reuters report that Restaurant Brands International Inc has approached Popeyes to express interest in an acquisition

** PLKI options volume jumped to 1,806 contracts, compared with avg daily volume of 58 contracts, per Trade Alert data; trading volume driven by sweeps of near-dated calls

** A block of 535 PLKI March 70 calls were bought for about $56,000, within a second of the news of the takeover bid

** By close of trading, these calls were worth $267,500, up about 4x, per Thomson Reuters data

** News-reading algorithms have been known to net big gains by executing speedy options trades on M&A headlines

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