Traders are shopping for a rally in Kroger.
The supermarket chain's stock has been consolidating at the top of its range recently and refusing to drop below its 200-day moving average. optionMONSTER's Heat Seeker tracking system lit up late yesterday as investors purchased more than 3,900 January 24 calls against open interest of just 1,384 contracts.
KR ended the session down $0.72 percent at $23.52. It has struggled for years with low margins and stiff competition, but its last earnings report on Dec. 1 was strong as same-store sales improved.
Overall option volume in KR was 8 times greater than average yesterday, with calls outnumbering puts by 62 to 1 in a reflection of the bullish sentiment.
(A version of this post appeared on InsideOptions yesterday.)
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