We’re back with a couple of interesting and unusualy large call buys from Monday’s trading. A couple of different smart money (insider traders) were buying up calls in Dean Foods Co (DF) and TTM Technologies, Inc. (TTMI).
The easy money train of trading options on insider information seldom stops and Monday was no different. One trader was feasting on Dean Foods Co (DF) January call options like a pig on slop, targeting the January $22 call options. He started with 513 DF July 2017 $22 calls, paying 41 cents per contract. That makes for a nice little $21,000 bet. And then 3593 Jan 22 calls at the ask. But they weren’t done with these morning buys.
This was followed up in the afternoon by a large be of 1623 Dean Foods January $22 calls at 40 cents for another $65,000 trade.
Keep in mind Dean Foods Co (DF) shares were trading in the $21.00 area when all these January $22 call options were being eaten up.
As of this morning we’ve seen no big news out of Dean Foods Co (DF) but you can be sure something is coming soon. Dean Foods doesn’t report Q4 earnings until February 20th so these options buys aren’t an earnings play. DF shares closed Monday at $20.85 down 5 cents on volume not worth writing home about. That makes these call buys even more unusual to us.
Up next was some unusual options action in TTM Technologies, Inc. (TTMI). Seems one trader “sensed” good news coming on TTMI and so on a whim they threw $350,000 into some TTMI call options. That’s right $350k”bet”. We like these big but quiet call buys on small companies almost always pay off. This smart guy bought 5,000 TTMI June $17.50 calls at 65 cents around the ask.
This guy gave himself plenty of time for the SEC to forget that he bought all these options when big news drives his options up several dollars in price later next year. This was a pretty unusual call buy in TTMI given that trading volume in shares were pretty light and the price was flat. TTM Technologies, Inc. (TTMI) closed Monday at $13.65 down 2 cents. It has a 52 week high of just $15.00, so this trader fully expects TTMI shares to rise substantially. Thus making his investment rise even more substantially on the options.
This is a really interesting trade in TTM Technologies, Inc. (TTMI) so we will definitely update you when the news breaks on this one and the share price spikes.