Bulls take swig of Anheuser-Busch

Mike Yamamoto (mike.yamamoto@optionmonster.com)

Traders are looking for Anheuser-Busch InBev to hit all-time highs.

optionMONSTER's Heat Seeker system found heavy buying in the November 105 calls, where about 4,400 traded for $0.20 to $0.90 yesterday afternoon. This is clearly new positioning, as open interest in the strike was just 911 contracts before the session began.

Traders were also purchasing the December 105 calls, which saw nearly 2,000 contracts go for $0.95 to $1.85. The volume at that strike was double the previous open interest.

These long calls lock in the price where the stock can be bought no matter how far it might climb. But if BUD remains below $105, the contracts will expire worthless by the end of this week and in mid-December. (See our Education section)

BUD rose 1.25 percent on Friday to close at $102.80. The Belgium-based brewing company ended October at a lifetime high of $104.79.

Total option volume in BUD topped 9,200 contracts on Friday, almost 10 times its daily average for the last month. Overall calls outpaced puts by more than 4 to 1.


More From optionMONSTER