General Mills reported better-than-expected fiscal fourth-quarter results
The shares of General Mills Inc (NYSE:GIS) are up 4.2% to trade at $73.23 at last glance, after the Cheerios maker reported better-than-expected fiscal fourth-quarter results. The company lowered its full-year forecast, however, citing rising costs and weaker demand.
On the charts, GIS isn't trading too far from its mid-May record high of $73.99, and stands 21.4% higher year-over-year. Plus, over the past couple months, the $65 level has provided a floor for pullbacks.
Puts have been much more popular than usual in the options pits. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), General Mills stock's 10-day put/call volume ratio of 9.41 ranks higher than 96% of readings from the past year.
Some of that pessimism could be unwinding, however. So far today, 2,771 calls and 1,726 puts have crossed the tape, with overall volume running at nine times what's typically seen. The July 72.50 call is the most popular by far, followed by the 75 call in the same monthly series.
Analysts have yet to chime in, but there is plenty of room for upgrades. Of the 11 in coverage, seven carry a "hold" or worse rating on General Mills stock.