TreeHouse Foods Rips Higher; Calls Active

Shares of TreeHouse Foods (THS) are moving higher today. Currently, THS is up by 3.06%, trading at $52.61. There have been rumors of consolidating in the space this past week and, given the three-month performance of THS, it looks like some traders are taking a shot here.

Call volume is running at 8x normal volume with 3,205 contracts traded. The majority of the action is on the November $60.00 strike, where 3,000 calls were bought, on the offer, for $0.50. Given open interest of 114 contracts, this is clearly new positioning.

Implied and historical volatility have been carrying a large premium from the past two weeks, at 29% and 13%, respectively. Implied is ticking higher today as well.

TreeHouse Foods, Inc. is a food manufacturer. The company's products include non-dairy powdered creamers, private label canned soups, salad dressings and sauces, powdered drink mixes, hot cereals, macaroni and cheese, skillet dinners, Mexican sauces, jams and pie fillings, pickles and related products, aseptic sauces, refrigerated salad dressings, and liquid non-dairy creamer.

About Michael Zerinskas

Originally from Chicago, Michael J. Zerinskas began his career as an intern for a small high-frequency trading firm based at the CME; he then moved on to become Chief Options Strategist at Benzinga.com. Michael is now Unusual Activity Editor at The Options Insider, specializing in VIX, volatility, and flagging unusual activity.