Sysco saw unusually heavy upside option activity yesterday ahead of its earnings report next week.
OptionMonster's real-time systems detected the purchase of more than 7,500 February 31 calls, the vast majority of them going for $0.15 at the same second in several large prints. The previous open interest at the strike was just 1,683, so this was fresh option buying.
The food distributor's shares closed yesterday off 0.53 percent to $30.14. Sysco has been trending higher since hitting a 52-week low of $25.09 at the beginning of October.
For the calls bought yesterday to turn a profit, Sysco's shares would need to gain roughly 3.5 percent or more by expiration on Feb. 17. The company's next earnings report is scheduled for the Monday morning.
Option volume at all SYY strikes totaled 9,450, about six times its daily average of 1,627. Calls outnumbered puts by nearly 10 to 1, a reflection of yesterday's bullish sentiment.
—McKhann has no positions in SYY.
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Chris McKhann is an analyst and writer for OptionMonster.