Options trading on Kellogg soars nearly 34 times average

NEW YORK Thu Apr 3, 2014 4:27pm EDT

Boxes of Kellogg's cereal are stacked in a supermarket in New York in this April 29, 2008 file photo. REUTERS/Lucas Jackson/Files

Boxes of Kellogg's cereal are stacked in a supermarket in New York in this April 29, 2008 file photo.

Credit: Reuters/Lucas Jackson/Files

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NEW YORK (Reuters) - Options activity in Kellogg Company (K.N) soared on Thursday, with total call and put volume nearly 34 times the recent average daily.

Kellogg shares ended nearly 6 percent higher at $66.39 on Thursday, the biggest one-day percentage jump since April 2009, with five times the average trading volume on the New York Stock Exchange.

The implied volatility in options on Kellogg saw an afternoon surge, with the stock prices spiking but there are "no immediate headlines to explain the move," said WhatsTrading.com options strategist Frederic Ruffy

In the options market, about 25,000 calls and 4,187 puts traded in the stock, compared recent average daily volume of just 560 calls and 311 puts.

Among the most actively bought contracts were the April $65 and $67.5 calls that expire in two weeks, May $65 and $70 calls that expire next month and July $65 calls that expire in July, according to options analytics firm, Trade Alert.

The stock's 30-day implied volatility, a key component of an options price, which measures the perceived risk of future stock movement was up 50 percent.

The option market's sentiment on the stock was more bullish with the put-to-call ratio of about 0.17 which was sharply lower than a 22-day average ratio of 0.56, according to Trade Alert.

(Reporting by Angela Moon; Editing by Bernard Orr)

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