Kraft Heinz Attracts Put Buyers on Plans to Restate Earnings

Kraft will restate more than two years' worth of financial statements

Managing Editor
May 6, 2019 at 10:59 AM
facebook X logo linkedin


Shares of Kraft Heinz Co (NASDAQ:KHC) were notably lower out of the gate, after the company announced it will be restating its financial reports from past quarters, due to "certain misstatements" and employee misconduct. Kraft also delayed its first-quarter earnings release. However, KHC shares have since turned higher, after Warren Buffett -- whose Berkshire Hathaway owns a Kraft stake -- said the company still has his confidence. 

KHC stock was last seen 0.4% higher at $32.69. The security has been relatively stagnant following its steep Feb. 22 bear gap, the result of a Securities and Exchange Commission (SEC) subpoena into its accounting policies. Kraft Heinz shares have remained below the $34 threshold since, and at last check were 24% lower year-to-date.

Digging into options, traders were optimistic ahead of today's bombshell. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows KHC with a 10-day call/put volume ratio of 4.52, ranking in the 96th annual percentile. In other terms, Kraft calls have been purchased over puts at a faster-than-usual clip during the past two weeks of trading.

Today, however, KHC puts are flying off the shelves at three times the average intraday pace, with nearly 7,000 contracts already exchanged. Most active is the weekly 5/10 31.50-strike put, with buyers expecting the shares to sink below the $31.50 level by the close on Friday, when the weekly options expire.

 

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