Kraft Heinz posted a disappointing annual forecast
Kraft Heinz Co (NASDAQ:KHC) stock is headed for its worst day since January 2023, down 5.3% at $34.22 at last glance. The food and beverage giant posted mixed fourth-quarter results, missing revenue expectations while earnings came in slightly better than anticipated, and a disappointing annual sales forecast. Inflation appears to be pinching demand, as customers look for deals elsewhere.
Today's negative price action has KHC breaking below its 80-day moving average for the first time since November, as well as the $36 level, which has acted as support over the last few months. Since last February, the equity is down roughly 14%.
Unsurprisingly, options traders are targeting the stock at higher volume than usual today. So far, 9,832 calls and 12,000 puts have been exchanged, which is six times the intraday average amount. Expiring at the end of this week, the February 33.50 put is the most active contract, with options being sold to open here.
Today's penchant for puts represents a large sentiment shift from the past 10 weeks. According to data at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 50-day call/put volume ratio of 5.63 stands higher than 98% of readings from the past year, showing calls being picked up at a much faster-than-usual rate.