Beyond Meat Calls Pop as Stock Nears New High

BYND is trading near its mid-June record peak

Jul 22, 2019 at 2:50 PM
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Beyond Meat Inc (NASDAQ:BYND) stock surged all the way up to $199.44 earlier -- just shy of its June 18 record high of $201.88 --- last seen trading up 12.7% at $199.15. It's not clear what the catalyst is for the bull gap, but options traders are reacting, targeting even more upside for the plant-based burger stock by week's end.

At last check, roughly 120,000 calls had changed hands -- almost three times what's typically seen at this point, and double the number of puts traded. The weekly 7/26 200-strike call is most active, and it looks like new positions are being purchased here for a volume-weighted average price of $3.96. If this is the case, breakeven for the call buyers at the close this Friday, July 26, is $203.96 (strike plus premium paid).

Beyond Meat options have been in high demand, with the name popping up on a list of stocks that have seen the most active weekly options in the past 10 sessions, compiled by Schaeffer's Senior Quantitative Analyst Rocky White. While calls have had the edge on an absolute basis, the weekly 7/26 155-strike put has seen the biggest increase in open interest over this two-week time frame, and data from the major options exchanges confirms buy-to-open activity here.

 BYND stock has been red-hot since its early May trading debut, nearly quadrupling from its initial public offering (IPO) price of $25 per share. However, the round $200 mark has served as a stiff barrier for the shares, with Beyond Meat not yet ending a session above the double-century mark. Wherever the equity settles at this Friday's close, the most either group of options buyers stands to lose is the initial premium paid.

bynd stock daily price chart on july 22



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