Mondelez International, Inc. (MDLZ) Bulls Eye Extended Upside

Bullish betting has hit fever pitch on Mondelez International Inc (MDLZ)

by Alex Eppstein

Published on Apr 29, 2015 at 11:52 AM
Updated on Jun 24, 2020 at 10:16 AM

Mondelez International Inc (NASDAQ:MDLZ) is soaring on a first-quarter earnings beat, last seen 5% higher at $38.64. Not surprisingly, the snack company's calls are flying off the shelves. By the numbers, 21,000 contracts are on the tape, compared to an expected intraday volume of fewer than 2,000, and roughly 3,600 puts.

Most active by a mile is MDLZ's May 39 call, which is seeing buy-to-open activity. By purchasing these positions, bullish bettors anticipate the stock will take out $39 by the close on Friday, May 15, when front-month options expire. Should that occur, MDLZ will be within striking distance of its $39.54 record peak from last July -- and in territory not charted since early December.

According to data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have preferred long calls to puts for a while. In fact, MDLZ's 50-day call/put volume ratio rests at an annual high of 5.16, with more than five calls bought to open for every put over the previous 10 weeks.

On the charts, though, Mondelez International Inc (NASDAQ:MDLZ) hasn't been much to write home about. The shares have advanced 6.4% year-to-date, the majority of which can be traced to today's bull gap.

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