Market Overview

Whole Foods Shares Spike Briefly On Apparent Rumor Revival

Related WFM
Whole Foods Market Rejects Checks
#PreMarket Primer: Friday, August 29: Japanese Economy Proves Resilient
Making Money With Charles Payne: 08/28/14 (Fox Business)

Shares of Whole Foods Market (NASDAQ: WFM) swung wildly Monday on what may have been a revived takeover rumor by the privately held grocery chain Publix.

If true, the rumor died soon after it started. Shares spiked about 2.5 percent higher in mid-morning trading, then crashed back to earth and were changing hands recently at $38.77, slightly above an intraday low.

The earlier rumor emerged June 6 when Briefing.com reported about “hearing chatter that privately held Publix is interested in” Whole Foods. The chatter had the effect of briefly boosting Whole Foods shares, which had earlier been hammered by a lackluster earnings report.

Schaffer's Research noted that Whole Foods' short-term options were in demand Monday, with calls outpacing puts by more than 3-to-1.

By purchasing the calls, buyers expect the shares to rebound above $39.50 by Friday's close, when the weekly options expire, Schaffer's said.

Whole Foods traded recently at $38.74, down 1.1 percent.

Posted-In: PublixNews Rumors

 

Related Articles (WFM)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters