From Steve Smith. Shares of Cal-Maine, is up 5% to $31 even as the nation’s biggest egg seller and distributor, is adding another 120 dozen shell eggs to a voluntary recall eggs may possibly be contaminated with salmonella. Despite the positive stock price option action looks bearish. The option activity, which is 12x the average with 3,500 puts and 2,700 calls have traded. Notable transactions are in the February $25/$30 put spread which traded 1,000x in what looks like an opening purchase and the November $30 calls have seen 1,300 contracts trade with 80% at the bid against prior open interest of 785 suggesting fresh selling.
About the Author (Author Profile)
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.