Schaeffer's Top Stock Picks for '25

APRN Call Options Pop on Beyond Meat Buzz

Blue Apron option bulls expect more upside for the stock this week

Digital Content Manager
Jul 16, 2019 at 10:22 AM
facebook X logo linkedin


Meal kit delivery service Blue Apron Holdings Inc (NYSE:APRN) announced that it will be rolling out a new vegetarian option in August, featuring Beyond Meat's (BYND) plant-based burgers. APRN stock is up 17% to trade at $8.97 in response -- on course for its best day since January -- and Blue Apron call options are flying off the shelves. 

On the charts, the equity is making a comeback after hitting a record low of $6.11 late last month. Since then, APRN has tacked on 47%, and is set to close above its 40-day moving average for the first time since early May. Nevertheless, the shares remain 40% lower on a year-to-date basis.

Considering its recent behavior, it's not surprising that analysts have remained cautious on APRN, with six "hold" ratings across the board. This could leave the door open for some upgrades, should APRN continue its recent upward trajectory.

Short interest, on the other hand, has taken a dramatic nosedive, down 87.8% in the last two reporting periods. Despite the recent exodus, the 1.77 million shares sold short still represent a solid 5.9% of the stock's available float. What's more, it would take almost seven days to cover all these pessimistic positions, at APRN's average pace of trading. 

As alluded to earlier, today's Blue Apron surge has call volume running hot. APRN has seen more than 2,600 calls cross the tape in the first hour of trading -- 45 times the average intraday pace. For comparison, fewer than 600 APRN puts have traded. Most active are the July 9 and 9.50 calls, where buy-to-open action is detected. By purchasing the calls to open, the buyers expect APRN shares to muscle north of the strikes by the close on Friday, when front-month options expire.

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?

 

 

(function(doc, script) { var js, fjs = doc.getElementsByTagName(script)[0], frag = doc.createDocumentFragment(), add = function(url, id) { if (doc.getElementById(id)) {return;} js = doc.createElement(script); js.src = url; id && (js.id = id); frag.appendChild( js ); }; // Google+ button //add('https://apis.google.com/js/platform.js', async="defer"); // Facebook SDK add('//connect.facebook.net/en_US/all.js#xfbml=1&appId=772755279557744', 'facebook-jssdk'); // Twitter SDK //add('//platform.twitter.com/widgets.js', charset='utf-8'); fjs.parentNode.insertBefore(frag, fjs); }(document, 'script'));