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Short-term bull stays in Mondelez

Mike Yamamoto (mike.yamamoto@optionmonster.com)

A short-term trader has apparently made some money in Mondelez and is repositioning for more.

optionMONSTER's Heat Seeker system detected the sale of 5,000 October Weekly 33 calls, which expired on Friday, for $0.29. At the same time, the trader bought 5,000 November Weekly 33.50 calls, which expire at the end of this week, for $0.27. Volume was below previous open interest in the October strike but above it in the November contracts, indicating that a long position was rolled forward.

The trader is closed the nearer-dated calls before expiration and opened the new trade to get another five sessions for the position to profit at a level that is $0.50 higher. The new long calls lock the price where the stock can be purchased no matter how far it might climb, but they will expire worthless by the end of Friday's session if shares fall from their current level. (See our Education section)

MDLZ rose 0.69 percent on Friday to close at $33.48, closing just shy of its 52-week high of $33.58 reached on Oct. 22. The stock broke through resistance at its 50-day moving average in mid-October and has been running higher since.

Management is scheduled to release third-quarter results on Nov. 6 after the close. The snack company, which is focused heavily on international markets, took its current form after spinning off its grocery business as Kraft Foods late last year.

Total option volume in Mondelez topped 12,500 contracts on Friday, double its daily average for the last month.


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