Huge Option Buys: WhiteWave Foods (WWAV), Vulcan Materials (VMC)

Hasn’t been a ton of large or unusual options plays today, but it’s been a good day for stocks with previous unusual options trades.  We’ll write about those later. But first, here’s a couple very interesting call buys from this morning in WhiteWave Foods (WWAV), and Vulcan Materials (VMC).

WhiteWave Foods (WWAV), one of the winners that saw big cally buying last month, is getting dialed in again today in both the August contracts and more interestingly, the January contracts.  First up, a trader bought 8,000 January $35 calls in WWAV just after 11 am, at the asking price of $1.45.  That’s a $1,160,000 bet!

Next up, a trader (the same one?) bought 1,638 of the August $32.50 calls in WWAV.  Clearly something is up here.

We like this one due to winner last month, but also because this is some big buying in a relatively thin traded stock, in a rather unexciting industry.  With the size of these bets, especially in the Jan $35 calls, these traders clearly know something good is coming for WhiteWave Foods (WWAV).

WWAV is up $1.02 today, currently trading at $32.04.

WhiteWave-logoWWAV does announce earnings on August 7, before the open.  Could be that, could be an analyst upgrade coming, could be a buyout.  We’ll have to wait and see.  We clearly missed the entry on this one, but will pull the trigger on the Jan 35’s if the price pulls back later this week.

The other very unusual call buy was in little known Vulcan Materials (VMC).  This is a producer of construction aggregates based in Alabama.  Definitely not an exciting business.  But see a trader buy 3,000 November $70 calls in VMC is exciting.  The trader paid $2.20 for the calls, for a total investment of $660,000.

This one is right up our alley.  The bigger the call buy and the smaller the company, the more we like to copy the trade.  But, alas, we were out of the office this morning and missed our entry.  We’re hoping for a pullback before we jump in this one.

Could be an earnings leak, as Vulcan Materials (VMC) is scheduled to report earnings on July 28.

VMC is actually flat today, but rebounded from todays low of $64.55 to it’s current price of $65.86.  Of course the spike in price came around the time of that call buy.

Here’s hoping for a pullback so we can jump in this one.

More to come.