Volume Spike Investor

We are still seeing high options trading in Kraft Foods Inc. (NYSE: KFT).  We’d ask traders to pay close attention to these today even though these were yesterday’s most active contracts yet again.  The initial trade was a directionless trade meant to capture some spread arbitrage but now it is obvious that speculators have also [...]

This week has seen a surge in trading in stock options in Kraft Foods Inc. (NYSE: KFT).  The food giant has never been this active in memory.  But oddly enough these transactions may be an inefficiency that exists rather than massive gambles. Take a look at the open interest as of yesterday now:
OPTION (Mo/STRIKE)             Volume    [...]

It is a rare day that Kraft Foods Inc. (NYSE: KFT) is among the more active options trades.  Today it isn’t just among them it is THE MOST active series of options trades at the CBOE. This looks like someone has unwound a major straddle trade.  The long and short of this one being a [...]