What the Options Market Tells Us About Wingstop

Investors with a lot of money to spend have taken a bearish stance on Wingstop WING.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with WING, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 9 uncommon options trades for Wingstop.

This isn't normal.

The overall sentiment of these big-money traders is split between 11% bullish and 66%, bearish.

Out of all of the special options we uncovered, 4 are puts, for a total amount of $193,700, and 5 are calls, for a total amount of $230,285.

Predicted Price Range

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $85.0 and $410.0 for Wingstop, spanning the last three months.

Volume & Open Interest Trends

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Wingstop's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Wingstop's whale trades within a strike price range from $85.0 to $410.0 in the last 30 days.

Wingstop Call and Put Volume: 30-Day Overview

Biggest Options Spotted:

About Wingstop

Founded in 1994 in Garland, Texas, Wingstop is a restaurant operator specializing in indulgent bone-in and boneless chicken wings, chicken tenders, fries, and, recently, chicken sandwiches. The firm's footprint has grown quickly since its inception, reaching north of 2,200 global stores at the end of 2023, rendering Wingstop the 31st-largest restaurant brand in the U.S. by system sales, according to Euromonitor data. With a 98% franchised model, Wingstop generates the lion share of its revenue from franchise royalties and advertising fees, with the remainder derived from a small footprint of company-owned stores.

After a thorough review of the options trading surrounding Wingstop, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Current Position of Wingstop

• With a volume of 201,335, the price of WING is up 1.82% at $376.04.
• RSI indicators hint that the underlying stock may be approaching oversold.
• Next earnings are expected to be released in 9 days.

Expert Opinions on Wingstop

Over the past month, 4 industry analysts have shared their insights on this stock, proposing an average target price of $406.25.

• An analyst from Morgan Stanley has decided to maintain their Equal-Weight rating on Wingstop, which currently sits at a price target of $400.
• An analyst from Wedbush downgraded its action to Outperform with a price target of $425.
• An analyst from Truist Securities has decided to maintain their Hold rating on Wingstop, which currently sits at a price target of $393.
• An analyst from Truist Securities has decided to maintain their Hold rating on Wingstop, which currently sits at a price target of $407.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Wingstop options trades with real-time alerts from Benzinga Pro.