Traders appear to be buying the Nov $45 strike puts, with roughly 1,950 contracts traded against open interest of 103 contracts. It looks like most of the puts were purchased for an average premium of $2.90 each. The puts may be profitable at November expiration if shares in Noodles & Co. drop 10% from the current price of $46.68 to breach the average breakeven point on the downside at $42.10. Shares in Noodles last traded below $42.10 at the end of August.
SFM – Sprouts Farmers Market, Inc. – Traders appear to be buying upside call options on Sprouts Farmers Market this morning, with shares in the name rising 6.9% in the early going to a record high of $44.75. Shares in Sprouts, publicly traded since August 1st, have increased more than 20% during the month of September.
The most traded options on Sprouts thus far today are the Oct $45 strike calls, with around 1,500 lots in play versus open interest of 179 contracts as of the time of this writing. Time and sales data indicates most of the $45 calls were purchased at a premium of $1.50 each, thus positioning buyers to profit in the event that SFM shares rally another 4.0% over today’s high of $44.75 to exceed the breakeven price of $46.50.
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