Very Unusual Call Buys in Dunkin Brands (DNKN), BioDelivery Sciences (BDSI)

Like yesterday, today has seen a bunch of large unusual call buying and some put selling.  While you can’t expect them all to be the next big winner, We think these two call buys have potential.  We saw some unusual call buys in Dunkin Brands Group (DNKN) ie Dunkin Donuts, and in BioDelivery Sciences Intl (BDSI).

The first interesting call buy was seen in Dunkin Brands Group (DNKN) around noon today . We saw a big trade of  6,100 DNKN December $50.00 calls with the buyer paying the ask of 95 cents in an opening trade. That’s the kind of conviction that makes us take notice, especially in a well covered company like DNKN.  That buy has a transaction value of $580,000.  This trader seems to feel confident in his “knowledge” of upcoming corporate news.

Dunkin Brands Group (DNKN) is currently trading at $46.71 up 35 cents on the day, but up 70 cents from it’s day low before the big call buying started.  DNKN has a 52 week high of $53.05, and a low of $40.50 for the year.  It’s traded just under 700,000 shares so far today versus it’s average volume traded of 1,09 million.

dunkin-donuts-logoDunkin Brands Group (DNKN)hasn’t seen any analyst action for a few weeks now, so it wouldn’t surprise us to see an upgrade or price target boost from a major firm in the next day or two. I’m going out on a limb and guessing Jefferies or Citigroup will announce a beefy upgrade and price target raise.   It just smells like a firm buying these calls ahead of an upgrade.

Meanwhile little known BioDelivery Sciences Intl (BDSI) saw an unusual call trade as well, albeit on a much smaller scale than Dunkin.  A trader bought 518 of the BDSI March $20 calls at the ask of $2.20.  Not a big buy, but it’s these sneaky little buys in little known companies that tend to turn into the big winners.  The transaction value of  the trade is only $114,000 but we bet this will be worth $250k plus in short order.

BioDelivery Sciences Intl (BDSI) is currently trading at $17.70 down 28 cents on the day, though it appears it’s turned the corner and is ready for takeoff.  BDSI has a 52 week high of $18.22, and a low of just $4.16 for the year.  It’s traded just over one million shares today so far, and is on track to greatly exceed it’s average daily volume traded.

BioDelivery Sciences Intl (BDSI) isn’t widely followed by the analyst community but has a BUY rating, with a price target of $20.50. It hasn’t seen any action since August 8 when Roth Capital boosted it’s price target to $20.  Based on this little call buy, we wouldn’t be surprised to see an upgrade soon, or possibly an update from the company on clinical trial status or sales from it’s approved product ONSOLIS .  Whatever it is, we love this little call buyand are in for a handful of calls.