Calls Attractive in Restaurant Operator Back at Key Support
Texas Roadhouse (TXRH) shares putting in a big reversal candle on Friday right off the lower value area for the month and setting up a nice risk/reward for a move higher in a name with sizable bullish open interest. TXRH rallied strong in 2020 and has pulled back from 52-week highs near $110.75 to base at the 23.6% Fibonacci of the run. Shares have room back to $93 in the near-term but a breakout of this base above $95 can make a bigger move up towards $105+. TXRH had sellers last week in the December $80 puts while 6400 May $95 calls and 9,500 March $95 calls sit in OI from buyers, more than $8M combined. The May $100 calls were bought 6000X on 10/27 as well, a $3.6M buy.
Trade to Consider: Long the TXRH January $90 Calls for $5.30 or Better