MAJOR OPTION VOLUME ALERT: Kraft Foods (KFT)
Posted in Options by: adminIt is a rare day that Kraft Foods Inc. (NYSE: KFT) is among the more active options trades. Today it isn’t just among them it is THE MOST active series of options trades at the CBOE. This looks like someone has unwound a major straddle trade. The long and short of this one being a zero sum game is that someone made a fortune and someone lost a fortune.
We have seen 131,700 contracts of the KFT AUG08 $35.00 CALLS trade and have seen 131,700 contracts of the KFT AUG08 $35.00 PUTS trade so far today. These are both well above the prior open interest so without knowing the options market maker nor the counterparty trader we don’t want to make any call here as to what the exact nature of or reason for the trade. It is likely that this was a form of a hedge or forward trade, but without knowing the parties we aren’t going to make any judgment on this one.
131,000 options contracts is representative of 13.1 million shares on a fully diluted basis. At 12:50 PM EST shares are up 0.6% at $31.01 and we have now seen 23.6 million shares. An average day generates trading of about 9.9 million shares and the 52-week trading range is $28.04 to $35.29.
JON C. OGG
JULY 29, 2008
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on July 29th, 2008 at 3:16 PJulwhat is that mean? do I get in ?
[...] MAJOR OPTION VOLUME ALERT: Kraft Foods (KFT)It is a rare day that Kraft Foods Inc. (NYSE: KFT) is among the more active options trades. Today it isn’t just among them it is THE MOST active series of options trades at the CBOE. This looks like someone has unwound a major straddle … [...]
on August 15th, 2008 at 3:16 PAug