ConAgra Foods has been dead in the water for the last month, and yesterday the bears stepped in.
OptionMonster's tracking programs detected heavy buying in the May 35 puts, with large blocks initially pricing for $0.15. Volume continued to build, ending the session at almost 11,300 contracts—more than 18 times previous open interest at the strike.
Puts lock in the price where shares can be sold in the food company, which gives them a strong inverse correlation. They can also generate significant leverage from even a small drop in the share price.