Dean Foods (DF) is down $2.05 to $16.74 in heavy trading of 18 million shares following a disappointing offering of the company’s Whitewave Foods (WWAV) dairy unit. WWAV is trading for $16.50 per share and below the $17 IPO price. DF had rallied 25 percent in the two weeks leading up to the spinoff on optimism it was increasing the size of the offering. The stock is getting slammed on the heels of the lackluster results today and options volume in DF is running 3.5X the daily avearge. 11,000 calls and 7,125 puts. Nov 18 and 19 calls are the most actives, as some investors might be liquidating bullish positions following the stock’s big drop. Nov 15 and 17 puts are the next most actives and implied volatility in DF options is up 5 percent to 60.
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.