Most of the trades priced for $0.45 and $0.50. These long calls lock in the price investors must pay to buy the shares, so they can really move if the stock pushes higher.
Kroger ended the session down $0.72 percent at $23.52. It has struggled for years with low margins and stiff competition, but its last earnings report on Dec. 1 was strong as same-store sales improved.
Overall option volume in the name was 8 times greater than average yesterday, with calls outnumbering puts by 62 to 1 in a reflection of the bullish sentiment.
Additional News: Kroger Profit Rises as Same-Store Sales Rise 5 Percent
Additional Views: Whole Foods 'Dead Money,' Buy Kroger, Safeway: Jeff Macke
—Russell has no positions in KR.
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David Russell is a reporter and writer for OptionMonster.