Bullish trading in Diamond Foods (DMND) for a second time this week. The stock jumped 9.7% on heavy volume of 3.5 million shares Tuesday. Options action was focused on Feb 45, Mar 42 and Mar 50 calls on the San Francisco snack company (see 1/24 color). DMND is up 18 cents to $37.77 today and have added another 5.5% since Tuesday. Today’s order flow includes a Feb 30 – 45 bullish risk-reversal for 55 cents, 1000X, which appears opening. Separately, Weekly (2/3) 30 – 45 risk reversal was bought to open for 55 cents, 731X on ISE. Data indicate a customer initiated a bullish trade, 1500X total. PG is out with earnings today. Procter & Gamble is selling its Pringles business to DMND and PG said the deal is expected to close this year. The company is also in the midst of an audit related to payments to walnut growers. Shares surged 31 percent on 12/9 on positive analyst commentary about the probe. The company expects a conclusion to the investigation by mid-Feb. Earnings expected around Feb 9.
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.