Large Block of Calls Sold on Archer Daniels Midland (ADM)

Shares of Archer Daniels Midland Company ADM are flat on the session, currently trading at $32.75. The stock has been moving largely higher over the past four months, rallying from a low near $24.50. One large options trade hit the tape right at the opening bell today. The December $35.00 call was sold 6,799 times (single block), on the bid, for $1.00. This far exceeded the open interest on the strike of 2,921 contracts, signaling new positioning on the name. At the time the calls were sold, 299,600 shares traded; given the delta of the call options of 0.3110, 211,489 shares would have to be traded to make the trade delta neutral, which appears to what was done here. This trade will benefit from decreased volatility and moderately higher prices. Archer Daniels Midland Company is principally engaged in procuring, transporting, storing, processing, and merchandising agricultural commodities and products. It is a processor of oilseeds, corn, wheat, cocoa, and other agricultural commodities and is a manufacturer of vegetable oil and protein meal, corn sweeteners, flour, biodiesel, ethanol, and other food and feed ingredients.