Appetite for Whole Foods Calls as Shares Rebound
Whole Foods Market Inc. (Ticker: WFM) shares are on the mend this morning, up more than 2.0% at $52.60 as of 11:00 a.m. EST, after yesterday losing more than 7.0% on the heels of a weaker than expected first-quarter earnings report released on Wednesday after the close. ?
Upside call buying in the regular March expiry options on WFM this morning looks for shares in the organic and natural foods grocer to continue to rebound during the next five weeks to expiration. The Mar $52.5 strike calls traded more than 6,000 times against open interest of roughly 2,000 contracts, with the bulk of the volume purchased at an average premium of $1.44 each. Traders long the calls stand ready to profit at expiration next month should shares in Whole Foods rise 2.5% over the current price of $52.60 to exceed the average breakeven point at $53.94. Shares in Whole Foods are down roughly 20% since trading up to an eight-year high of $65.59 back on October 28th.
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