Traders apparently think that nothing can stop Pilgrim's Pride.
optionMONSTER's Heat Seeker monitoring system detected the purchase of some 5,300 September 17.50 calls for $0.70 and the sale of an equal number of September 15 calls for $1.25. Volume was below open interest in the 15s, which indicates that an existing position was closed and rolled to the higher strike.
These calls set the price where shares can be bought in the poultry producer, allowing traders to cheaply track upside in the name. Adjusting the position let the investor collect a credit of $0.55 while keeping him or her exposed to further gains . (See our Education section for more on how options can be used to manage positions and limit risk.)
PPC rallied 11 percent to $14.94 on Friday and has more than doubled so far this year. The stock has been rampaging higher as earnings beat expectations, financials improve, and the company expands in Mexico. It's now back to levels last seen in the summer of 2008, immediately before the subprime market crash.
Total option volume in PPC was 10 times greater than average in the session, according to the Heat Seeker. Calls outnumbered puts by more than 100 to 1.
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