Shares of Campbell Soup are popping after an upgrade by Goldman Sachs, but the big call spread does not look overly bullish.
CPB is up 2.85 percent to trade at $34.26. The food company is back near the May highs, which reached $34.44. Shares were down at long-term support around $31.30 through the first half of June.
More than 13,000 of the CPB options trade, compared to a daily average of 350 contracts. optionMONSTER's systems shows that the action is almost all in one trade.
A trader sold 6,400 November 36 calls for $0.25 against open interest of 202, so it was a new position. Seconds later, he or she bought 6,400 August 35 calls for the ask price of $0.05 against open interest of more than 7,000.
It appears that the trader is rolling a short-call position to a higher strike at a later date as the stock moves up and August expiration approaches at the end of the week. The options could have been sold naked with an initial bearish bias or against long shares as a covered call trade. (See our Education section)
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