Bird Flu Scare Has Cal-Maine Foods, Inc. (CALM) Traders Busy

Cal-Maine Foods Inc (CALM) touched a record high earlier

by Alex Eppstein

Published on May 11, 2015 at 2:10 PM

Cal-Maine Foods Inc (NASDAQ:CALM) is among the session's biggest gainers, possibly due to an outbreak of avian influenza in the Midwest, which could lead to higher egg prices. As such, intraday call volume has spiked to six times what's expected, and the stock's 30-day at-the-money (ATM) implied volatility earlier notched an annual high of 54.9%.

Digging deeper, data from the International Securities Exchange (ISE) indicates positions are being bought and sold to close at the now ATM August 50 call. It also looks like the out-of-the-money May 47.50 put is seeing sell-to-open activity, as speculators believe CALM will trade atop $47.50 through week's end, when the front-month options expire.

As alluded to, CALM has exploded today. At last check, the shares are up 16.5% at $50.09, and fresh off a record high of $50.69. Longer term, the stock has advanced more than 28% in 2015.

If this uptrend holds up, it could force short sellers to the exits. More than 26% of Cal-Maine Foods Inc's (NASDAQ:CALM) float is dedicated to short interest, which would take 13 sessions to repurchase, at typical daily trading levels.

A Schaeffer's exclusive

6 Sectors for Summer

Access your FREE insider report before it's too late!


  
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Next Big Player in U.S. MJ Boom
Most pure-play marijuana stocks in the U.S. trade on the Over-the-Counter stock exchange.
Wall Street Roars Higher Amid Civil Unrest
Investors weighed a mixed bag of jobs data
AstraZeneca Stock Flat Despite COVID-19 Vaccine News
AstraZeneca saw a rise in capacity for its COVID-19 vaccine candidate
The Next Big Player in U.S. MJ Boom
Most pure-play marijuana stocks in the U.S. trade on the Over-the-Counter stock exchange.