Options Brief: Archer-Daniels Midland (ADM)

ADM – Archer-Daniels Midland Co. – Shares of one of the world’s largest processors of oilseeds, corn, wheat, cocoa and other feedstuffs are up 1.7% to stand at $27.14 as of 11:45 am (ET) after earlier rallying more than 2.1% to touch an intraday high of $27.25. Investors itching for continued bullish movement in the price of the underlying stock purchased call options on the vegetable oil manufacturer this morning. Traders picked up approximately 4,400 calls at the now in-the-money September $27 strike for an average premium of $1.24 apiece. Call buyers make money as long as Archer Daniels’ shares rally 4.05% over the current price of $27.14 and trade above the average breakeven point on the calls at $28.24 ahead of expiration day in September.

About Andrew Wilkinson 1023 Articles

Affiliation: Interactive Brokers

Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.

Interactive Brokers: Interactive Brokers offers direct market access to around 80 electronic global markets from a single account. Successful traders and investors understand that superior technology and lower trading costs can result in greater returns. For 32 years we have been building direct access trading technology that delivers real advantages to professionals worldwide. With consolidated equity capital of US $4.4 billion, IB and its affiliates exceed 1,000,000 trades per day. In addition, our prudent and conservative risk policies make Interactive Brokers a safe haven for your money. Discover some of the reasons why IB, the largest independent US broker/dealer, is the professional traders' and investors' choice.

Visit: Interactive Brokers

Be the first to comment

Leave a Reply

Your email address will not be published.


*