Market News

October 19, 2016  Wed 5:47 AM CT

A highly bullish strategy is looking for Mondelez to rally by spring.

optionMONSTER's market scanner shows that 2,500 March 50 calls were purchased for $0.49 while 2,500 March 32 puts were sold yesterday. Volume surpassed open interest in the puts, indicating that this is new positioning.

This combination trade is especially bullish because a rally would boost the price of the long calls while decreasing the value of the puts that were sold. But the opposite will occur if the stock drops, and the trader will be on the hook to buy shares if they fall below $32 by expiration. (See our Education section)

MDLZ rose 0.31 percent to $42.12 yesterday but is down 8 percent in the last three months. The snack and beverage company is scheduled to announce quarterly results in pre-market hours on Oct. 26.

Overall option volume was about average in MDLZ yesterday.

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