Heavy buying of upside calls in Campbell Soup today, as the stock continues its rebound from the huge drop post earnings in mid May. Continued buyout speculation (KHC most frequently rumored) has played a part in the stock’s rebound, along with a general improvement in the tone of consumer staple stocks (XLP). After hitting a 52 week low of $32.65 on June 7th, the stock is currently at $36.50 as I type this note. The following call options were most notably active today.
>2,000 July 37 calls traded
>3,400 Aug 37 calls traded
>6,000 Aug 38 calls traded
>3,800 Aug 39 calls traded
>5,500 Aug 41 calls traded
Total volume among all call options strikes is >30,000 contracts today.
I bought a position in the July 37 calls at $1.05, with its implied volatility at 28.75, much cheaper than the low to mid 30’s IV on the August calls mentioned above.
Stock volume in CPB is over 10 million shares today, twice its daily average of late of about 5.5 million shares.