Archer Daniels Midland has been navigating well in difficult times, and traders are looking for the agriculture name to keep climbing.
OptionMonster's real-time tracking systems lit up with activity in the April 40 calls yesterday (Thursday) as large blocks were bought for $0.18 to $0.21. More than 4,400 contracts traded against open interest of just 390. The June 40s were also active later in the morning, though they were sold and under open interest.
The company, which transports, stores and markets agricultural commodities, fell 2.57 percent yesterday. (Ticker shows updated share prices.)
Patricia Woertz has been an aggressive and hands-on CEO who's been doing a great job, and rising oil prices help this company because of its exposure to ethanol. It will also attract the attention of value investors, with a price/earnings ratio of 11 times and a dividend yield near 2 percent.
Of the 13,500 contracts that traded in the name yesterday, more than 11,000 were calls, a reflection of the upside bias.
Najarian owns call spreads in ADM.
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