OptionsHouse

Options Trading News

June 28, 2013  Fri 12:21 PM CT

MDLZ: SEE CHART GET CHAIN FIND STRATEGIES
A trader is buying more time for a potential rally in food company Mondelez.

optionMONSTER's Heat Seeker detected the sale of 4,760 Weekly 29 calls that are expiring today and the purchase of 4,760 July 29 calls at the same time. The Weeklies traded for $0.10 and were below open interest, while the July options went for $0.37 against open interest of just 10 contracts.

The trader is closing the expiring calls and rolling the position, paying a net $0.27 for the adjustment. The new long calls, which lock in the purchase price for the stock no matter how far it might rise, are looking for shares to rally above $29.27 by the regular monthly July expiration three weeks from today. (See our Education section)

MDLZ is down 0.86 percent to $28.90 in afternoon trading. The stock dropped sharply with the broad market selloff last week and fell below its 200-day moving average, but shares have been trading sideways since.

The company, which is focused heavily on international markets, took its current form after spinning off its grocery business as Kraft Foods. Mondelez retained well-known snack brands, including Oreo, Ritz, Triscuits, and Wheat Thins.

Total MDLZ calls top 25,000 contracts so far today, compared to about 1,500 puts.



Share this article with your friends


Related Stories

MDLZ

Mondelez gets big vote of confidence

January 13, 2016

A large put sale is betting that downside potential will be limited for the next month in the snack and beverage company.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

The sweet spot

When using the Stock Replacement Strategy, we must remember that in reality, we are doing a STOCK trade. We are just using options. We are replacing the stock position with an option position (long calls).

View more education articles »