B&G Foods attracts hungry bulls
Traders are looking for B&G Foods to continue its upward momentum.
optionMONSTER's Heat Seeker system shows that about 2,600 October 35 calls were purchased for $1 to $1.35 today. These are clearly new positions, as open interest in the strike was just 267 contracts before the session began.
These long calls lock in the price where the stock can be purchased through mid-October no matter how far it might climb. They could be sold earlier at a profit if premiums rise with a rally before then, providing potentially significant leverage, but the contracts will end up worthless if shares close below $35 at expiration. (See our Education section)
BGS is up 4.26 percent to $35.45 in afternoon tracking, bucking the broader market selloff. The food company surged more than 11 percent yesterday on news that it was acquiring the Green Giant and LeSueur vegetable businesses from General Mills for $765 million in cash.
Today's overall option volume in the name is 12 times its full-session average. Overall calls outnumber puts by 22 to 1 so far, a reflection of the bullish sentiment.
More From optionMONSTER
