Bulls Busy as Whole Foods Market, Inc. (WFM) Blows Up

Whole Foods Market, Inc. (WFM) topped expectations in the earnings confessional last night

by

Published on Feb 12, 2015 at 10:36 AM
Updated on Apr 20, 2015 at 5:32 PM

Whole Foods Market, Inc. (NASDAQ:WFM) is racing up the charts this morning, following a fiscal first-quarter earnings beat. At last check, the shares were 4.4% higher at $55.86 -- and fresh off an annual peak of $56.35 -- bringing their year-to-date advance to 10.8%. Meanwhile, calls are flying off the shelves, running at seven times the expected intraday rate.

WFM's two most active strikes are the February 54 and 56 calls, which appear to be seeing some buy-to-open action. By purchasing these now in-the-money options, the traders expect the stock will extend its lead north of the respective strikes through next Friday's close, when front-month options expire.

This activity represents a decided change of pace for WFM speculators. During the last two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity has racked up a put/call volume ratio of 1.07 -- in the 87th percentile of its annual range.

Similarly, Whole Foods Market, Inc's (NASDAQ:WFM) Schaeffer's put/call open interest ratio (SOIR) of 1.04 sits just 6 percentage points from a 12-month peak. In other words, short-term speculators have rarely been this put-skewed toward the shares of the organic groceries retailer.


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