Traders are looking for Dean Foods to rally in the weeks after its quarterly results next month.
optionMONSTER's monitoring system detected the purchase of 2,000 August 19 calls for $0.35 to $0.42 yesterday. This represents new positions, as volume surpassed the strike's open interest of 1,488 contracts.
Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)
DF rose 0.78 percent to $18.10 yesterday and is up 5 percent in the last three months. The dairy-products company is scheduled to report earnings in pre-market hours on Aug. 8.
Overall option volume was 5 times greater than average in the name yesterday. Calls outnumbered puts by a bullish 21-to-1 ratio.
More From optionMONSTER