Plenty of interesting likely insider call option buying frenzy Friday December 9th with a large flow of calll buying seen in Arconic Inc (ARNC) and Flowers Foods Inc (FLO) on Friday, December 9th.
The insider traders are looking to enjoy a festive Christmas season full of stockings stuffed with money. One trader hit up Arconic Inc (ARNC) call options in a big way on Friday, targeting the super cheap July 17 call options. He/she started with 540 ARNC July 2017 $30.00 calls, paying just 39 cents. That makes for a nice little $21,000 bet.
This was followed up with several large trades in the ARNC Dec call options, totalling over 11,000 of the DEC $22.50 call options in multiple large blocks, all in the 9 to 12 cents range. That’s an additional $121,000 bet in total for this trader. Do you think they might have known something the rest of the world doesn’t know yet?
Keep in mind Arconic Inc (ARNC) shares were trading in the $21 area when all these Dec $22.50 calls were being gobbled up.
So far, there is no news on Arconic Inc (ARNC) so we’ll have to wait and see what this trader was expecting to come out. ARNC shares closed Friday at $21.80 up 89 cents or 4.26% with volume 2.6 million shares compared to average volume of 6.7 million shares. ARNC is up 5 cents in Monday pre market activity.
Up next was some unusual options flow in FLO. That’s Flower Foods, Inc. (FLO). Seems one trader knew something was up with FLO and bought 400 FLO DEC16 $17.50 calls at 60 cents. They then followed that up with another 280 April $20 calls at 35 cents. Not huge money here, but unusual none the less. Maybe the janitor overheard something through the boardroom vent?
And of course not long after the janitor bought those cheap Flower Foods, Inc. (FLO) call options, the stock rocketed from under $17.00 to $19.83, and settled in at the close to $19.30, up $2.27 or 13.33%). That there is a nice quick options profit. So what did the janitor know? Surprise, surprise. The company came out and announced that they had settled a distributor class action lawsuit with a payment of $9 Million to settle said lawsuit. How did that janitor know?!
We’ll continue to keep you updated on these and other blatant insider options trades as they happen.