NEW YORK (TheStreet) --CNBC contributor Jon Najarian cited unusual activity from General Mills (GIS - Get Report) stock as investors today have been aggressively buying 8,000 plus of the $72.50 calls that are trading out in September.
A call option is an agreement which gives investors the right, but not the obligation, to purchase a stock, bond, commodity, or other asset at a stated price within a distinct time period.
"Calls have ramped today from yesterday when they were 50 cents, now they're pushing up to $1.00. Eight-thousand of those, open interest, was 2,000. So about 6,000 contracts or 600,000 share-equivalent is the opening trade that is happening today in this stock," Najarian explained on Thursday afternoon's CNBC's "Fast Money Halftime Report."
Moreover, Najarian added that he bought the stock and plans on maintaining his position in it for about two weeks.
Shares of General Mills were higher during mid-afternoon trading on Thursday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate GENERAL MILLS INC as a Buy with a ratings score of A. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, notable return on equity, expanding profit margins and compelling growth in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: GIS