Kraft Heinz Stock Snags Earnings Beat on Higher Prices

Call volume is running at double the intraday average today

Deputy Editor
Oct 26, 2022 at 11:14 AM
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Kraft Heinz Co (NASDAQ:KHC) reported better-than-expected third-quarter results before the open, with profits of 63 cents per share on revenue of $6.51 billion beating estimates of 56 cents per share on $6.27 billion, amid price increases. The food and beverage name also reaffirmed its full-year sales and profit guidance. At last check, KHC is up 0.8% to trade at $37.36.

On the charts, Kraft Heinz stock has been climbing from its recent pullback to a Sep. 28, nearly one-year low of $32.73. Shares earlier surged to their highest level since Sept. 2, and are looking to notch their second-straight close above the 100-day moving average, which had been a level of pressure since late May. The equity is also pacing for a third-straight gain, and has added 11.3% so far this month.

Puts have been more popular than usual over the past 10 weeks, but calls still outweigh puts on an absolute basis. KHC's 50-day put/call volume ratio of 0.50 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 88% of readings from the past year. 

Today, options bulls are chiming in at double the intraday average volume, with 9,755 calls exchanged, in comparison to 3,250 puts. The November 40 call is the most active contract, followed by the weekly 10/28 38-strike call. 

It's also worth noting KHC's Schaeffer's Volatility Scorecard (SVS) sits at 82 out of 100. This means the stock has exceeded option traders' volatility expectations during the last year.

 

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