Safeway (SWY) adds 22 cents to $19.86 in active trading of 5.7 million shares after peer Supervalu (SVU) jumped 15 percent on earnings and guidance Tuesday. Options on Safeway are seeing active trading as well, 4,200 calls and 225 puts so far. The flow is concentrated in Jun 22 calls and includes a multi-exchange sweep of 1,818 contracts for 30 cents each. Data indicate an opening buyer. 3,517 now traded and the bullish trading is possibly a play on Safeway’s earnings release, which is due out around Apr 26 (unconfirmed). Levels of implied volatility in SWY options are moving up 6 percent to 30.5.
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.