This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

How the Bulls Made a Killing in Sysco

 
 
By David Russell of OptionMonster
 
NEW YORK -- Traders cleaned up in a hurry Tuesday with upside bets in food distributor Sysco (SYY).
 
OptionMonster's monitoring systems detected the paper early as money flowed into the December 34 calls for 35 cents to 40 cents. The stock had been consolidating since gapping higher on a strong earnings report earlier in the month, and Tuesday's buyers are looking for a continuation of that move. They didn't have to wait long.
 
Sysco shares paused for two hours, but then continued higher and ended the session up 1.12% to $34.16. Those calls, meanwhile, more than doubled to as much as 85 cents.
 
The call buying worked because it allowed traders to lock in the price where they could purchase the stock no matter how far it climbs. Given that these contracts are inexpensive relative to the stock itself, even a small move in shares can result in tremendous leverage.
 
Overall option volume was 27 times greater than average, with calls accounting for a bullish 92% of the total.
 
Russell has no positions in SYY.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
YHOO $44.16 -0.62%
AAPL $123.93 -0.40%
FB $81.45 -0.93%
GOOG $543.31 -0.86%
TSLA $188.93 0.08%

Markets

DOW 17,692.98 -83.14 -0.47%
S&P 500 2,056.65 -11.24 -0.54%
NASDAQ 4,861.4070 -39.4780 -0.81%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters