Speculators Pounce on Surging Amira Nature Foods Ltd (ANFI) After Filing

Amira Nature Foods Ltd (NYSE:ANFI) is now set to close above a key technical level for the first time in months

Jan 25, 2016 at 2:33 PM
facebook X logo linkedin

Options volume has exploded on Indian rice concern Amira Nature Foods Ltd (NYSE:ANFI), after the company finally submitted its Form 20-F after missing an earlier deadline. Both calls and puts are trading at five times the average intraday pace. The most popular strike is the February 10 call, with data from the International Securities Exchange (ISE) confirming some buy-to-close activity on the now in-the-money option. 

Close behind is the March 12.50 call, and some speculators may be buying to open positions -- betting on ANFI to topple $12.50 for the first time since late July. The shares will have until the contracts expire -- at the close on Friday, March 18 -- to hit this level. Delta on the strike has jumped from 27% as of Friday's close to 42% today, indicating an increased likelihood of the options expiring in the money. 

If traders are undertaking bullish positions on ANFI today, it'd mark a rare phenomenon. According to data from the ISE, Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 9.90 puts have been bought to open for every call during the past two weeks. This 10-day put/call volume ratio outranks all but 1% of readings taken in the past year, pointing to a highly pronounced interest in long ANFI puts recently. However, given ANFI's recent outperformance -- it's beat out the S&P 500 Index (SPX) by almost 70 percentage points in the past three months -- some of these put players could be shareholders looking to insure their paper profits

But that certainly doesn't mean there aren't ANFI skeptics. In fact, close to 20% of the food stock's float is sold short. What's more, it would take these bears almost two weeks to buy back their bets, going by average daily trading volumes. 

As alluded to, Amira Nature Foods Ltd (NYSE:ANFI) has shot higher today after the company's delayed filing. The stock was last seen sporting a 26.9% lead at $10.53, and on pace to close above its 320-day moving average -- a level that blocked its two previous breakout attempts -- for the first time since July 23. 

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI