ConAgra Foods Inc. (CAG) Call Activity Leads to a Lucrative Trade

ConAgra Foods Inc. (CAG) is a packaged food company providing branded and private branded foods in households as well as commercial foods business serving restaurants and food service operations. CAG is trading at $38.54 close to the upper end of its 52 week range of $28.60-$39.04. Year to date the stock has outperformed the market rallying 6.23%. The stock ripped to the upside in today’s session by about 1.34% or $0.51.

Early in the session a trader bought 5,000 of the CAG July 39.0 Calls for $1.08 when the stock was trading at $38.29. This order was recorded a few minutes after the opening bell on OptionHacker, and the stock rose about $0.52 to $38.81 after the trade hit the tape. Over 7,900 contracts have been traded today hinting at bullish sentiment. The CAG July 39.0 Calls have traded as high as $1.70 in today’s session making this a highly profitable trade. This stock ripped to the upside when these calls were bought on intraday time frames from today’s session and continued to trade higher. The stock is most likely bullish today on news of the company pleading guilty in the salmonella outbreak.

Trade: A trader bought 5,000 of the CAG July 39.0 Calls for $1.08
Risk: $108 per 1 lot
Breakeven: $40.08

If a trader bought a 20 lot of these Calls they would have profited $1,240 at the highs on $2,160 in risk. This is a great example of a hugely profitable UOA trade.