Market News

October 18, 2016  Tue 11:36 AM CT

Traders are betting that Campbell Soup will bounce this week.

optionMONSTER's market scanner shows that more than 3,000 October 55 calls were purchased for $0.17 to $0.60 today. This represents fresh buying, as volume was well above the strike's open interest of 577 contracts.

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)

CPB is up 1.29 percent to $54.37 in afternoon trading but is down 19 percent in the last three months. The food company is scheduled to report earnings before the market opens on Nov. 22.

Overall option volume is 7 times greater than average so far today. Calls outnumber puts by a bullish 14-to-1 ratio.

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