Bird Flu and Scandals Hurt Yum! Brands in China

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July 10 (Bloomberg) -- P. Silverman & Co. Managing Partner Philip Silverman discusses his play for Yum! Brands with Dominic Chu on Bloomberg Television's "Lunch Money." (Source: Bloomberg)

We want to talk about yum brands.

This company gives us the view on china.

Yum brands has had problems in china as of late.

The risk could be to downside.

A lot of people are talking about this.

It has bounced back strongly in the last two weeks.

You could see some real potential downside if this number is worth it.

Seeing that chart right now there, the rally is up 8% this year.

As we approach this number, there could be some downside.

The stock has already rallied quite a bit.

How do you go about taking that view?

We are taking a look at limited risk.

We are buying the july 70 and selling the july 57. quite you make money by selling is worth it.

The 67 half putt -- you make money by selling the 67 have put -- half put?

Exactly.

Not a big loss, potential gain of $2. if the market goes down, risk to reward is good.

The s&p over the last two weeks, there is a good chance we could see a sell-off year.

As you approach it, if he were an outright bear you would just own, buy, pay whenever it cost to take a short view on this, but you're saying that you do not think it will be that much of a downside in you could make things cheaper?

Exactly, decrease in the cost and the amount you can lose.

We do not think that yum brands is going to be a major move down, but given their recent move in trading, given china, we just think that the potential is there for a downside move.

Short term, that is how you play it.

This text has been automatically generated. It may not be 100% accurate.

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