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.
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