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By Chris McKhann

Shares of Campbell Soup (NYSE:CPB) have been highly volatile of late, and one trader is taking advantage of that by selling puts.

CPB finished the day at $33.56, down 0.93 percent. The 10-day historical volatility has been driven up to a new 52-week high of 24 percent from 6 percent on Feb. 16.

The average option volume in CPB is just 1,900 contracts, but 13,417 traded yesterday. Most of this volume was in the April 33 puts.

optionMONSTER's Depth Charge shows that one block of 10,770 was sold for $0.60, the bid price at the time. The previous open interest was just 3 contracts, so this was a new opening position.

The puts were not sold against any trades in the CPB shares that we saw yesterday. If it is naked put sale, this trade will take a full profit if shares are above $33 at expiration.

This may also be a way to get long shares on a pullback. If the stock is below $33 at expiration, the trader will be assigned and be obligated to get long shares.

Source: Why Campbell Soup Put Selling Is Hot