Market Overview

Jon Najarian Makes A Bullish Bet On Whole Foods

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Speaking on CNBC, Jon Najarian said that he spotted an unusual options activity in Whole Foods Market (NASDAQ: WFM) after earnings results were reported.

The average volume for call options before the earnings was 10,000 contracts and today 40,000 contracts were traded. He explained that it is important to understand that behind this volume are not investors like Carl Icahn, because these people trade OTC contracts and not listed contracts. However, people who sell them OTC options, buy listed options to hedge some of their exposure.

Jon Najarian added that 17 million shares of Whole Food were traded today and the average is 7 million. In his opinion, this means that something is going on with the stock.

After the earnings, the stock jumped approximately 2.5 points to $40.45, but it gave back the most of its gains and it closed at $38.47. Mr. Najarian managed to buy some on the news and close the most of it before the retreat. At $38.50 price level, he decided to buy again and he used call spreads to go long.

Posted-In: Jon NajarianCNBC Long Ideas Options Markets Media Trading Ideas

 

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