Kraft Foods (KFT) is up 47 cents to $39.50 in active trading of 5.9 million shares and the best percentage gainer in the Dow Jones Industrial Average early-Tuesday. 16,000 calls and 2,350 puts traded on the food producer, which is 2.5X the daily average. The top trade is 10,000 July 40 calls for $1.31 on CBOE. While it traded on the bid, a source on the floor says the intiator bought. It’s possibly closing. 10,640 now traded against 10,762 in open interest. No news on KFT today. Shares have performed well latey, up 5.6 percent since 6/27 and probing the 52-week highs of almost $40 per share set in early-May. Today’s call buyer is possibly anticipating a move beyond $40 by yearend. Earnings come into play early-August.
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.