An investor sold the upside in Campbell Soup yesterday,
targeting a key level from last summer.
optionMONSTER's tracking programs detected volume of 6,400 August
35 calls for $0.46 against open interest of just 363 contracts. The
premium was much closer to the bid price, indicating the trade was
That $35 level is roughly the same place where the food stock
peaked in late June and early July before dropping to a multi-year
low in August. The investor is now obligated to sell the stock if
it returns to that price but, including the credit earned, the exit
price would be $35.46. He or she probably owns the equity and is
using the options as part of a
CPB, which fell 0.06 percent to $33.66 yesterday, has been an
extremely slow-moving stock. It's up just 5 percent since the
August lows, compared with a 17 percent gain for the S&P 500 in
the same period.
Yesterday's call seller may have purchased the stock at the lows of
last summer and is now using the contracts to establish a selling
date one year later to reduce tax liabilities. It also lets the
investor get paid for the
passage of time
. (See our
Overall option volume was 9 times greater than average in the
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