$92M Contract Rewards Amira Nature Foods Ltd (ANFI) Shareholders, Call Buyers

Amira Nature Foods Ltd (NYSE:ANFI) has reached a $92 million contract with a repeat customer

Dec 31, 2015 at 10:39 AM
facebook twitter linkedin

Amira Nature Foods Ltd (NYSE:ANFI) is sizzling this morning, after the Indian rice company said it has secured a $92 million contract with a repeat customer in Europe, Africa, and the Middle East. By the numbers, the stock is up 8.3% at $9.53, bringing its quarter-to-date gain north of 72%.

Option traders have been betting bullishly amid ANFI's rapid ascent. Specifically, at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock has racked up a 10-day call/put volume ratio of 9.81 -- with long calls outweighing puts by a nearly 10-to-1 margin. If that's not enough, this ratio ranks near the top quartile of its annual range.

On the flip side, short sellers have been piling on ANFI, with over one-fifth of its float sold short. In fact, at the stock's average trading levels, it would take nearly 12 sessions to cover these positions. It's possible some of the recent call buying is the work of these short sellers hedging their bearish bets against extended upside -- a smart strategy, considering today's bullish gap.

As alluded to, Amira Nature Foods Ltd (NYSE:ANFI) has had a masterful fourth quarter, riding atop support from its 32-day moving average. However, it's worth keeping in mind that the shares have still surrendered about one-third of their value on a year-to-date basis -- making the skepticism witnessed among short sellers a little more understandable.

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1