Kellogg Company (K, news, chart) is seeing 18 times its normal trading on a noticeable increase in put buying. 13,000 puts have traded, or 104 times the number of call options. Today’s volume includes 10,000 of the January 40 puts (three blocks of 4,309, 2,108, and 2,107 contracts at 55 and 60 cents on the NYSE with stock between $50.70 and $50.90 a share). Meanwhile, another 1,785 of the July 50 puts traded, with 97 percent hitting offerside. The activity seems bearish and comes after Bunge’s (BG) announced acquisition of Corn Products (CPO). CPO is a supplier to several large consumer companies including Kellogg, Coca Cola, Unilever, and Nestle.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.