ADM – Archer-Daniels Midland Co. – At least one options investor satisfied an appetite for Archer-Daniels Midland Co. call options right out of the gate this morning. Shares of the processor of oilseeds, corn, wheat, cocoa and other feedstuffs increased as much as 1.3% to secure an intraday high of $33.15. The stock is currently up a lesser 0.30% to stand at $32.82 as of 12:30 pm ET. More than 10,000 calls changed hands at the December $35 strike within the first 10 minutes of the trading session. One trader involved in the frenzied call activity purchased 6,799 December $35 calls at a premium of $1.00 per contract. The bullish player stands ready to make money should shares of the manufacturer of vegetable oil, flour and ethanol surge 8.6% over today’s high of $33.15 to surpass the effective breakeven price of $36.00 by expiration day in final month of 2010. The sharp rise in demand for call options on the stock lifted Archer-Daniels Midland’s overall reading of options implied volatility 6.2% to 26.68% by 12:35 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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