BUY, SELL, HOLD (2)

Call Players Turn Out as Mondelez International Inc (MDLZ) Pops

Mondelez International Inc (NASDAQ:MDLZ) is soaring today, following the Oreo maker's strong earnings report

Apr 27, 2016 at 10:39 AM
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While shares of Apple Inc. (NASDAQ:AAPL) are plunging in the wake of the company's quarterly earnings report, Mondelez International Inc (NASDAQ:MDLZ) is soaring following the Oreo maker's quarterly results. Specifically, MDLZ stock is up 3.6% at $44.05, after the firm unveiled first-quarter profit and revenue that beat estimates. Separately, Mondelez said its chief commercial officer, Mark Clouse, will be heading to Pinnacle Foods Inc (NYSE:PF). Against this backdrop, call volume has jumped to two times the average intraday rate in early trading -- a rare occurrence in MDLZ's options pits.

In fact, over the past 50 trading sessions, speculators at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have bought to open 48,643 put options on MDLZ, compared to 14,827 call options. What's more, the resultant put/call volume ratio of 3.28 arrives in the 81st annual percentile, meaning puts have been bought to open over calls at a faster-than-usual clip.

Echoing this put-skewed backdrop is MDLZ's Schaeffer's put/call open interest ratio (SOIR) of 1.84. Not only does this show that puts nearly double calls among options slated to expire in three months or less, but it ranks just 8 percentage points from a 52-week peak. In other words, short-term options traders have rarely been as put-heavy toward MDLZ as they are now.

Technically, the stock is up 23% from its Feb. 8 annual low of $35.88, bouncing along a trendline that has connected a series of higher lows. What's more, thanks to today's post-earnings pop, shares of Mondelez International Inc (NASDAQ:MDLZ) are on track to notch their highest settlement since Jan. 5.

MDLZ daily chart April 27

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