Hershey Co. (HSY) Looks Sweet
by Houghton and Atkeson 08/06/08
Sixteen times the usual option volume has traded in Hershey (HSY) so far today. Upward of 17,000 calls have traded versus fewer than 1,000 puts, and the volume is concentrated in the HSY Aug 40 Calls (HSYHH).
There was also buying in the HSY Sept 40 Calls (HSYIH) and the calls at the $45 strike in both August (HSYHI) and September (HSYII) as the stock accelerated upward into the close of the trading day.
There is no clear news that we know of that explains the sudden interest in the HSY options and the 7% jump in the share price. The Wall Street Journal had an article discussing the chances of Tootsie Roll Industries (TR) being acquired. Tootsie Roll has a P/E ratio of about 37, while HSY is trading at about 20 times earnings.
Ready to get in on the big-money options trading action? Sign up for your risk-free trial to Nick and Andrew's Big Money Options service, which gives you 2-3 specific trading recommendations a week, delivered by e-mail, PLUS timely profit alerts and trade updates.
More By This Expert
Looking into June, the market should begin refocusing on upcoming earnings reports for evidence the economy is gaining momentum.
Watching the Treasury's Actions
In the short-term, the government's bond auction is likely to be a key driver of stocks.
Treasury Auction Boosts Market
The Treasury's auction of two-year notes brought an upside surprise which should alleviate fears of a lack of demand for U.S. paper.
Credit Markets Point to Upturn
The credit market, a reliable indicator of equity direction, suggests we will break out of the SPX's trading range to the upside.
The market seems to be saying that a 30% move up from the lows is ahead of the real economy and the market needs to allow the economy to catch up.
- What's Hot: DELL, DHI November 20, 2009
- Sidewinder: MCD, DKS, JPM November 20, 2009
- Options News: SII November 20, 2009
- Sidewinder: CY, ADSK, KG November 19, 2009
- Options for Dummies November 19, 2009
Options Broker Center
