Bunge is attracting positive option trades ahead of the company's earnings report next week.
More than 3,300 May 65 puts traded in a strong selling pattern on Friday, with most of the contracts going for $1, according to optionMONSTER's tracking systems. The volume was more than 10 times higher than the strike's open interest of just 310 contracts before the session began, clearly indicating new positions.
In separate activity, traders also bought more than 1,000 May 70 calls as premiums rose from $0.75 to $1.40 throughout the session. That was fresh buying, as the volume was well above the previous open interest of 352 contracts at that strike.
The put sellers are looking for BG to stay above $65 until the May options expire in less than five weeks, while the call buyers are betting that the stock will rally above $70 in that same time. Both moves suggest that traders are expecting at least decent numbers when the agricultural and food company announces first-quarter results on the morning of April 25. (See our Education section)
BG rose 2.4 percent on Friday to close at $69.24 on heavy share volume that was nearly 2.5 times higher than average. The stock peaked at $80.99 on Feb. 5--its highest level since September 2008--but gapped below $75 two days later after the company badly missed fourth-quarter earnings and revenue forecasts. It then traded sideways until falling again this month, as shares broke below their 100- and 200-day moving averages.
More than 6,800 options traded in the name in total on Friday, 8 times its daily average in the last month.
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