Bulls Target Dean Foods

Dean Foods (NYSE: DF) is receiving some bullish call action this morning; the action is coming in the form of purchases on the April and May $17.50 call strikes, where nearly 4,000 calls have been purchased in each month. The stock is currently sitting in the middle of a large gap that was set back in early February when the stock dropped dramatically after their earnings missed Street estimates by nearly 9%. The stock has climbed back from the rubble and is breaching the 50-day moving average to the upside today.

The technicals, coupled together with today’s options action, suggest that Dean Foods could make a run to the $18 handle fairly quickly.