Hillshire Farms has pulled back to a key level, and the bulls
are stepping in.
optionMONSTER's tracking systems detected the purchase of 2,000
October 38 calls for $1.35 and the sale of an equal number of
October 32 puts for $0.96. Volume exceeded the previous open
interest in each strike, indicating that this is a new combination
It cost $0.39 to open the position, which will behave similarly to
owning shares in the maker of Jimmy Dean sausages and Ball Park
franks. The investor is spending much less money up front than
buying stock directly but will be on the hook to buy shares if they
fall below $32 by expiration in mid-October. (See our
section for more on
HSH rose 0.71 percent to $35.22 yesterday. It gapped higher on a
strong earnings report in late January, traded as high as $38 the
next month, and has been skidding lower more recently. The shares
are now back to old highs from November and their 100-day moving
average, which could make some chart watchers think that they're
due for a bounce.
The next earnings report is scheduled for May 6.
Total option volume in the name was 9 times greater than average in
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