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January 10, 2013  Thu 2:45 AM CT

CPB: SEE CHART GET CHAIN FIND STRATEGIES
A trader is betting that Campbell Soup will hold current levels in the next several weeks.

optionMONSTER's tracking systems detected the sale of 2,500 February 35 puts for $0.65 in 18 seconds yesterday. Open interest in the strike was just 179 contracts before the session began, so this is clearly a new position.

These short puts are looking for CPB to close above $35 at expiration in mid-February. If the stock is below this strike price at that time, the trader will face the obligation to buy the stock for an effective price of $34.35 when the credit from the put sale is factored in. (See our Education section)

CPB rose 0.63 percent yesterday to close at $35.21. Shares of the food company have been sliding since hitting $36 as the new year began, but they have held support at the $34.50 level since mid-August.

Yesterday's put trading pushed total option volume in the name to 3,148 contracts, more than 5 times its daily average of 609 for the last month.
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Education & Strategy

Gamma

As we continue to discuss the Greeks, we come to the first of the strike based Greeks called Gamma. Gamma is known as the second derivative, while delta is the first.

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