Options Alert: Tyson Foods (TSN)

Posted in Options 
July 31st, 2009

Tyson Foods Inc. (NYSE: TSN) call volume is exploding with more than 9,300 August $12.50 calls and 2,300 September $12.50 calls trading early on, most of the action buying at the offer on the large lots.  Shares are breaking below its 200 day EMA and traders and the 74% implied volatility is rising ahead of August 3 earnings.  Shares look weak here, but traders are betting on a large upside move.  The meat producer trades 0.16X sales and 0.9X book value, the cheapest of its peers.  Despite pork production being scaled back due to Swine Flu worries, chicken may help the quarter.   11:05 AM EST


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