DF – Dean Foods Co. – Bulls breakfasted on Dean Foods’ call options in the first half of the trading session with shares of the processor and distributor of milk and dairy products rallying as much as 12.8% to an intraday high of $10.59. Investors populating Dean Foods Co. today exchanged nearly 5 calls on the stock to each single put option that changed hands as of 12:50 pm ET. Shares are up 6.6% at midsession to stand at $10.45. Optimistic options players hoping to see Dean Foods’ shares continue higher ahead of expiration day next month purchased at least 1,000 now in-the-money calls at the September $10 strike for an average premium of $0.44 each. Call buyers make money as long as the price of the underlying stock exceeds the average breakeven price of $10.44 through expiration in September. The surge in demand for options on Dean Foods helped raise the stock’s overall reading of options implies volatility 36.8% to 58.10% by 12:55 pm ET.
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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.
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