Kellogg’s (K) has been rallying today in active trading of 1.4 million shares and was recently up 72 cents to $49.70. The options order flow is interesting, as total volume is running 10.5X the daily average. 6,290 calls and 2,585 puts so far. Some players think Aug $50 calls on the stock are Greeaaaat! because they are the most actives in Kelloggs today. 2,561 traded and, while most of the flow (64 percent) has been mid-market, ISEE is hinting at opening firm buyer. Sep 50 and Aug 52.5 calls are the next most active call options in Kelloggs. The Sep 50 and Aug 47.5s are the most active puts. 30-day ATM vols are up 7.5 percent but still at low levels of only 15 percent. No headlines to explain the bullish trading in K today. Shares are testing a 50-day moving average and also a previous resistance level just shy of $50. Earnings expected 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.