Shares of Dr. Pepper Snapple Group (DPS), the Plano, Texas-based soft drink company, has steadily carved out new all highs in 2014. Shares are already up over 37% in 2014, having traded in a 52-week range of $43.18-$65.43.
At least one institution seems to think the original “King of Beverages” is headed higher. Last Friday at 2:05 pm EST, a trader came in to buy 5,755 DPS Nov 70 Calls for $0.65 in what was labeled an opening position.
In terms of total risk premium, this trade isn’t exceptional – only about $374,075, not a huge number for unusual options activity. However, should these calls expire in-the-money, the trade would control about 575,000 shares, or around a third of the average daily volume traded in DPS. The market was also $0.55-$0.65, with the trader paying the ask-price being indicative of strong level of conviction.
Within minutes of coming across our scanner, these Nov DPS 70 Calls traded $0.75-$0.80, and eventually moved to $1.00-$1.05 before the end of Friday’s session.
Monday’s session saw DPS shares hit a new all-time high of $65.43. Shares were off slightly after the Tuesday open, with the Nov 70 Calls trading $1.05-1.20.
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OptionHacker is a proprietary scanner used to scan order flow for the most unusual options activity each trading session.
