The bulls are hungry for Krispy Kreme Doughnuts before its
earnings report tomorrow.
optionMONSTER's Heat Seeker monitoring system detected the purchase
of more than 5,000 December 7.50 calls for $0.15 to $0.35 against
open interest of 1,330 contracts. Premiums rose as the trades
crossed despite the share price barely moving between the prints,
which reflects strong buying interest in the calls.
lock in an entry price for shares and are heavily leveraged to
upside in the stock. They could easily double or triple from even a
modest rally following the release of quarterly results after the
bell tomorrow. (See our
KKD ended yesterday's session at $6.81, up 7.75 percent. The
doughnut and coffee company has been trending higher since early
2009, fluctuating violently but making consistently higher lows
along the way. It's been paying down debt and raising prices, which
has helped produce strong financials for the last two quarterly
Overall option volume was 11 times greater than average in
yesterday's session, with calls outnumbering puts by 165 to 1,
according to the Heat Seeker.
(A version of this post appeared on
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