Markets

Whole Foods trader shops for upside

One investor is looking for Whole Foods Market to keep on running.

optionMONSTER's Heat Seeker monitoring system detected the purchase of 2,000 February 80 calls for $0.51 and the sale of 1,000 February 55 puts for $0.51. Volume was more than twice open interest in both strikes.

The trade is similar to buying shares in the grocery chain, profiting from a rally and losing money from a drop. The unusual thing about it is that they bought more calls than the number of puts sold, which increased the cost but also makes them more makes them more exposed to the upside than the downside.

WFM, which is up 0.49 percent to $69.83 in afternoon trading, has risen 38 percent this year. The company has been steadily climbing amid strong earnings reports and same-store sales growth. It peaked just below $80 in late 2005, and today's option trader is apparently looking for a retest of those old highs.

More than 4,500 contracts have changed hands so far, versus about 1,700 in a typical session, according to the Heat Seeker.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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