Tyson Foods has fallen along with the broader market, and now the bulls are looking for a bounce.
optionMONSTER's tracking programs detected the purchase of 7,600 September 37 calls for $1.55 and $1.60, dwarfing previous open interest of just 72 contracts. That indicates new money was put to work on the long side.
Calls lock in the price where investors can buy the poultry processor's stock, letting them control a rally at minimal cost. They can also generate significant leverage if it shares moves in the right direction. (See our Education section.)
TSN rose 0.51 percent to $37.24 yesterday, but is down 6 percent in the last week. It gapped attempted to rally on July 28 after revenue beat expectations on July 28, only to follow the S&P 500 lower since. It's now attempting to hold support at its 200-day moving average, which could make some chart watchers expect a bounce.
Overall option volume was 4 times greater than average in the session, with calls accounting for three-quarters of the total.
(A version of this post appeared on InsideOptions Pro yesterday.)
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