Call Buying Activity in Mallinckrodt (MNK) Targets 11% Upside (or Potential Short-Squeeze Protection) Into Mid-July -Susquehanna

Susquehanna options strategist Alison Edwards notes bullish options activity in Mallinckrodt (NYSE: MNK), as an opening investor bought 5,000 Jul 17.5 Calls for $0.875. This investor breaks even on a 11% upside move through mid-July, but given the relatively high short interest (~40% of float), this may be an investor protecting against a short squeeze.

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