Unusual Call Buys: Southwestern Energy (SWN), Mondelez Intl(MDLZ), Darling Ingredients (DAR)
There has been a crap load of large, unusual put buys today, in some big names. But there’s still a few interesting call buys to chew on too. Three of the most interesting call buys so far this morning have been seen in Southwestern Energy Company (NYSE:SWN), Mondelez International Inc (NASDAQ:MDLZ), and in Darling Ingredients Inc (NYSE:DAR).
Southwestern Energy Company (NYSE:SWN) had a trader come in fast and furious on the November $36 calls. The trader bought 7,500 Nov $36 calls this morning, paying $1.00 per contract. That’s a good sized bet for the $12 Billions energy exploration company. It’s worth a total of $750,000. Clearly this call buyer knows something about Southwestern Energy Company (NYSE:SWN) that hasn’t been announced yet.
Southwestern Energy Company (NYSE:SWN) announces earnings on October 29, so it is possible that this is an earnings leak play, but that is not likely. More probable that an analyst is about to upgrade, and or, boost the target price on SWN. Soon. Southwestern Energy Company (NYSE:SWN) is actually down 9 cents to $34.67, as it see saws with the general market’s swings.
Mondelez International Inc (NASDAQ:MDLZ) is one company name no one has heard of, yet eats all their products. The $57.5 BILLION company makes such snack brands as Oreo, Nabisco, Cadbury, Trident gum and more. Who knew? Not us. But one trader knows even more, as he bought 4,000 of the October $35 calls, paying 18 cents for them. That makes for a transaction value of just $72,000. It doesn’t sound like a lot, and it isn’t. But it IS very unusual for this stock, so we are in. And so are others, as there have now been over 6540 of the Oct $35 calls traded now.
Mondelez International Inc (NASDAQ:MDLZ), is currently trading at $33.96 up 21 cents on the day, but well off it’s low of $33.38 early this morning. Volume is higher than average and on track to greatly exceed it’s daily average. MDLZ has a 52 week high of $39.54 and a low of $30.00 for the year.
This is not an earnings play, as the company reports November 4, 2014. Our money is on an analyst upgrade, maybe by Deutsche Bank?
The third unusual call buy that we saw was in little known company Darling Ingredients Inc (NYSE:DAR). This is another of those “small” but unusual call buys. This morning, a trader bought 4,000 of the October $19 calls in DAR. They paid 30 cents per contract on the trade. So that makes this little bet on Darling Ingredients Inc (NYSE:DAR) worth just $120,000. We like these little buys where the trader try’s to stay under the radar, and hope no one notices. So we are in on this one.
Darling Ingredients Inc (NYSE:DAR) is up 37 cents today, at $18.63 and well off it’s early low of $18.19. DAR has a 52 week high of $23.95 and a low of $18.15. This call buy could be an indication of an impending upgrade by Goldman Sachs, or maybe Wedbush?
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