Options Trading News

September 20, 2016  Tue 8:22 AM CT


Traders are looking for Whole Foods Market to rally by Thanksgiving.

optionMONSTER's monitoring program shows that about 5,300 November 29 calls were purchased for $1.33 to $1.58 yesterday. This represents fresh buying, as volume was more than 5 times the open interest in the strike.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

WFM rose 0.67 percent to $28.58 yesterday but is down 7 percent in the last three months. The organic-grocery chain is expected to report earnings after the close on Nov. 2.

Overall option volume was about average in WFM yesterday, but calls outnumbered puts by a bullish 6-to-1 ratio.

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