Bulls possibly trying to sneak in the back door in Whole FoodsWhole Foods (WFMI) calls are seeing the second day of bullish activity with traders focusing on the July $22 call option strike. Yesterday, More than 7,600 calls traded in the July 22 strike adding 5,481 contracts to the open interest.
Today, More than 15,550 calls hit the tape exceeding that current open interest by 2x. The order flow is giving a bullish bias with the activity trading on the ask-side of the market. (WFMI) recently received an upgrade to Outperform at RBC Capital citing "improved business model".
A high short float still loams with 20% of the float short and shares seem to be selling off after hitting a double top from September of last year. MACD indicator and OBV show weakness and would indicate more downside.
The call buying looks to be speculative or "insiders" slowly accumulating upside calls possibly knowing tomorrows news before the rest of the world.
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