Mondelez Traders Expect Bullish Summer
OptionMonster's tracking systems detected the purchase of more than 2,600 September 38 calls for $1.09 to $1.15. Volume was well above open interest, which indicates that new money was put to work on the long side.
These long calls lock in the price where the stock can be purchased through mid-September no matter how far it might climb. They could be sold earlier at a profit if premiums rise with a rally before then, providing potentially significant leverage, but the contracts will lose value if the shares pull back.
Mondelez rose 0.69% to $37.87 on Tuesday as it continues to trade sideways since a strong earnings report on May 7 drove shares to $38.47. That was the stock's highest price since the snack company, which generates most of its revenue overseas, was spun off from Kraft Foods in late 2012.Total option volume in the name Tuesday was triple its daily average for the last month. Overall calls outnumbered puts by almost 5 to 1, reflecting the session's bullish sentiment. Yamamoto has no positions in MDLZ.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV