This Day On The Street
Continue to site
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

Hershey Pullback Draws Bullish Trades

By David Russell of  OptionMonster

New YORK -- Hershey Foods (HSY) has skidded lower but now the bulls are looking for a rebound. 

OptionMonster's tracking programs detected the purchase of some 2,300 October 95 calls, most of which were priced at 60 cents to 67 cents. Volume dwarfed previous open interest of just 81 contracts, which indicates that new money was put to work. 

Such long calls lock in the price where investors can buy a stock, letting them profit from a rally at limited cost. The contracts can generate significant leverage if shares move in the right direction but can also lose value on a pullback. 

Hershey shares rose 0.4% to $91.92 on Tuesday but have lost 14% of their value in the last six months on weak sales. The candy maker is now attempting to bounce around the same $90 level where it paused in the middle of last year, which could make some chart watchers think that it's at support and will continue higher. 

Total option volume in the name was triple its daily average, with calls outnumbering puts by 14 to 1.

Russell has no positions in HSY.


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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $111.32 0.49%
FB $92.80 -1.29%
GOOG $645.44 0.62%
TSLA $241.46 -1.91%
YHOO $30.95 0.32%


Chart of I:DJI
DOW 16,790.19 +13.76 0.08%
S&P 500 1,979.92 -7.13 -0.36%
NASDAQ 4,748.3610 -32.9030 -0.69%

Free Reports