Shares in Dean Foods Co. (Ticker: DF), down more than 30% from a 52-week high of $22.96 reached back in August, are roughly flat on the current session, trading at $15.20 as of midday in New York. Fresh interest in January 2015 expiry call options on the stock this morning suggests one or more traders are positioning for the price of the underlying to rebound somewhat during the second half of the year.
The most traded contracts on Dean Foods are the Jan ’15 17.0 strike calls, with volume in excess of 4,800 lots as of the time of this writing. Time and sales data suggests most of the calls were purchased at a premium of $0.90 each. Buyers of the 17.0 strike calls may profit at expiration next year in the event that DF shares rally approximately 18% over the current price to exceed the breakeven point at $17.90. Shares in Dean Foods last traded above $17.90 on January 7th.
Chart – Dean Foods shares down sharply since August 2013
