Option update 10-31-07: Hershey, Dean Foods volatilities up on takeover chatter

Posted Oct 31st 2007 12:51PM by Paul Foster
Filed under: Rumors, Hershey Co (HSY), Dean Foods (DF), Options

Hershey (NYSE: HSY) is recently up $0.51 to $43.01 on renewed & unconfirmed takeover chatter. HSY call option volume of 10,491 contracts compares to put volume of 570 contracts. HSY November option implied volatility of 45 is above its 26-week average of 24 according to Track Data, suggesting traders buying calls for an upside move.

Dean Foods (NYSE: DF) is recently trading up $0.45 to $27.41 on renewed takeover chatter. DF, a leading food & beverage company, reduced 3Q & full-year earnings expectations on 10/2. DF is expected to announce full 3Q EPS on 11/8. DF November 30 calls have traded 108 times on transaction volume of 3,888 contracts above its open interest of 874 contracts. DF November option implied volatility is at 57 according to Track Data, suggesting larger price risk.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Tags: Dean Foods, DeanFoods, DF, Hershey, HSY, option implied volatility is, OptionImpliedVolatilityIs, options, takeovers