Overcharging Scandal Doesn't Deter Whole Foods Market, Inc. (WFM) Bulls

Whole Foods Market, Inc. (NASDAQ:WFM) is being accused of overcharging for prepackaged food

Jun 25, 2015 at 3:06 PM
facebook X logo linkedin


Whole Foods Market, Inc. (NASDAQ:WFM) is down 0.6% at $40.79, a day after reports surfaced claiming the company has been overcharging customers for prepackaged food. One official stated that the number of violations "is in the thousands." Option traders don't seem too worried about it, though.

Calls are crossing at three times the expected intraday amount. The most popular contract is the weekly 6/26 41-strike call. By purchasing the calls to open, the traders are looking for WFM to climb atop $41 by tomorrow's close, when the weekly series expires.

This is just more of the same from the stock's option traders. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), WFM's 10-day call/put volume ratio comes in at 2.47 -- higher than 70% of all other readings from the past year. In fact, at the beginning of the month, this same ratio registered at 0.97, meaning put buying was more prevalent coming in to June.

One group that is far from sold on WFM is the brokerage bunch. Of the 23 analysts with coverage on the stock, 13 rate it a "hold."

The stock's technical performance of late has been uninspiring, to say the least. Whole Foods Market, Inc. (NASDAQ:WFM) has been trending lower since touching an annual high of $57.57 on Feb. 19, including a post-earnings bear gap in early May. Moreover, the shares are 19% lower year-to-date, and are now testing round-number support at $40 -- a level that acted as a speed bump through most of 2014. 
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI