KKD – Krispy Kreme Doughnuts, Inc. – Doughnut maker and retailer, Krispy Kreme, popped up on our scanners this morning on heavier than usual options volume. Shares in the name increased more than 10.5% during the first half of the trading session to $11.18, the highest level in more than five years. Traders positioning for shares in Krispy Kreme to extend gains during the next couple of weeks purchased in- and out-of-the-money call options in the early going on Friday.
Bulls appear to have purchased upwards of 510 calls at the Jan. $11 strike for an average premium of $0.23 apiece. Call buyers make money at January expiration as long as shares in KKD settle above a fresh multi-year high of $11.23. The Jan. $12 strike calls also attracted volume this morning, with around 150 calls changing hands at that strike for a premium of $0.05 apiece. Overall options volume on the name is greater than 5,800 contracts as of 12:20 p.m. ET, versus the stock’s average daily options volume of around 319 options contracts.