Whole Foods has dropped more than 13 percent in the last week, but that isn't stopping traders from stepping in to buy upside options.
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The grocery chain , which had been up near $22 only a week ago, fell 2.46 percent to close yesterday's regular session at $19.03 and dropped more than 2 percent in after-hours trading. But Whole Foods' price is approaching technical support levels and is up 170 percent from its November low just above $7. While the stock has posted a lower high, it has yet to make a lower low—meaning that it hasn't broken its uptrend yet.
Some option traders are clearly betting that the shares will continue to rise. OptionMonster's systems show that almost 14,000 of the July 22 calls were purchased, with larger institution-sized blocks going for $0.40. This action was against open interest of 6,791, indicating that new positions were being opened.
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Chris McKhann is an analyst and writer for .