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Unusual volume in at-the-money call options of The Kraft Heinz Company (KHC) today shows investors may be nervous ahead of its upcoming earnings.
Unusual KHC call option volume is over 63 times prior levels at the $22.50 strike price.
KEY POINTS
- KHC's CEO recently canceled a planned company split, altering long-term strategy expectations.
- If KHC maintains a 17% FCF margin, its implied valuation could reach $32 billion.
- A lower, more conservative 15.85% FCF margin estimates KHC's valuation at $29.89 billion, up 14.3%.
- Short sellers can earn a 0.95% yield using at-the-money calls, reflecting hedging against a price drop.
COMPANIES
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