There was an unusually large trade in Colgate-Palmolive (CL) early this afternoon. An investor bought a block of 15415 August $70 calls paying as much as 73 cents per call. 83% of the buys were at the ask.
Colgate-Palmolive (CL) is currently trading down 13 cents today at $67.82. Volume is average at best at 1.2 Million shares. Options volume however is 3.8 times usual volume. Open interest on the August 70 calls was only 5,039 prior to this opening call buy.
There is no news today (yet) to explain why an investor would take such a large position in the August $70 calls. The value of that trade was in the neighborhood of $1 Million. We’ll see over the coming week or two whether this is a leak on a yet to be released upgrade and price target increase, or maybe a leak on earnings, which are to be released July 31, 2014.
It wouldn’t surprise us to see a price target increase from one or more major analysts, given that the current average target price is only $70.78, while the stock is trading at almost $68.00. Given it’s average rating of overweight, it would seem very plausible to get some price target raises.
It is pretty rare to see a leak of material info on a big company like Colgate Palmolive, but it does happen occasionally. We’ll hae to keep our eyes on the news wire for the big reveal.
Here’s the current stock chart for Colgate-Palmolive (CL):