Chiquita Draws Heavy Call Buying

By Mike Yamamoto

Chiquita Brands has pulled back from technical resistance, but at least one trader believes that the stock will break through those price levels in the near term.

CQB closed the week at $15.42 after trading just under $17, the highest level since a year ago. Shares were down to $4.32 in March after plummeting in February.

Friday's options action involved the October 17.50 calls, where one block of 10,000 was bought for $0.35. Open interest at that strike was just 2,613 contracts, so the trades clearly represented new positions. The action was also unusual because the 20-day average total options volume is just 758 contracts.

This call buying is looking for a break above the 52-week high of $17.41 from last September before the contracts expire in October, the new front-month options.

(Chart courtesy of tradeMONSTER)