Unusual Options Activity: Beyond Meat (BYND)

Shares of plant-based meat alternative Beyond Meat (BYND) have been trading in a range over the past year, and are now trading near the lower end of their range. One trader sees the possibility for a big move higher in the coming months.

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  • That’s based on the December $150 calls. With 121 days until expiration, over 4,975 contracts traded compared to a prior open interest of 106 contracts, for a 47-fold rise in volume.

    The buyer of the calls paid about $4.70 to make the trade.

    The company has been posting solid growth numbers, with revenue up 32 percent over the past year. However, the company isn’t profitable yet. The company’s share price has also had some wild moves depending on businesses that it’s contracting with for supplying its product.

    Action to take: Shares are now flat over the past year, far underperforming the overall market. Based on the price range and on a technical basis, however, shares look oversold and ready to move higher.

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  • Investors can buy shares to bet on a move higher. Based on the price range, a 20-30 percent rally in the coming months is certainly possible.

    Given that kind of move, the December call options look like an attractive play, especially with shares nearly 50 percent off their 52-week high of $221.


    Disclosure: The author of this article has no position in the company mentioned here, but may make a trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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