Learn the trade here. Make it on tradeMONSTER

Options Trading News

July 5, 2013  Fri 4:45 AM CT

WFM: SEE CHART GET CHAIN FIND STRATEGIES
Short-term traders are betting that Whole Foods Market will rally by the end of next week.

More than 1,500 Weekly 55 calls that expire on July 12 traded with a bullish bias on Wednesday for prices ranging from $0.11 to $0.20, optionMONSTER's Heat Seeker system shows. These are all new positions, as there was no open interest in the strike before the trades appeared.

WFM rose 0.35 percent to $53.03 on Wednesday, not far from its all-time high of $53.60 reached on May 28. The upscale grocery chain gapped up from below $47 on a strong quarterly results early last month and has been trading sideways since.

The calls bought on Wednesday, which lock in the purchase price for the stock, are looking for WFM to rise above $55 before they expire a week from today. The company is scheduled to release its next earnings report on July 31, 2-1/2 weeks after those calls expire. (See our Education section)

Total option volume in the name on Wednesday exceeded its full-day average even in the truncated trading session. Overall calls outpaced puts by a bullish 6-to-1 ratio.
Share this article with your friends


Related Stories

WFM

Cramer: A taste for Whole Foods

September 16, 2014

The organic grocer has experienced a slowdown from high-single-digit comparable-store sales, but that underperformance may be coming to an end.

WFM

Bulls go shopping at Whole Foods

August 27, 2014

The bulls are going on a shopping spree in the organic grocer today, months after a poor earnings report hammered its shares.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

Swing Trading w/ Jon Najarian and Ron Ianieri

Education & Strategy

Make your rules, and stick by them!

New traders often act on the recommendations of others or on gut feel. But that is a quick way to...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER