Heinz Options Predict Higher Move Thursday

H.J. Heinz Company (HNZ) is one of the few winners in the market lately as investors remain bullish on the ketchup company. Call options on the stock soared with 64,765 contracts trading hands, which is 19x the average daily volume of 3,408 contracts. The majority of the action was centered around the September $45 and $50 calls, which expire in just one day. Investors are clearly bullish on the stock in the short-term to maintain its upward momentum.

The majority of the strength in H.J. Heinz has to do with strength in foreign sales of packaged foods. Frozen potatoes and soy sauce alone led to a 12 percent rise in net income in the first quarter. Meanwhile, sales rose at least 20 percent in every foreign region, which is good news since the company generates about 60 percent of its sales outside of the U.S. The company also intends to release more than 400 new products within two years and further increase its marketing budget.

H.J. Heinz manufactures and markets a line of processed food products around the world. These products include ketchup, condiments and sauces, frozen products, soups, beans and pasta meals, infant food and other processed food products. The company’s products are manufactured and packaged to provide safe, wholesome foods for consumers as well as foodservice and institutional customers. In August, the company also acquired Benedicta, which specializes in salad dressings.

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