Bunge Limited (BG) is a worldwide food processing and agribusiness company with operations across the entire agribusiness space. The company’s stock is currently trading around $74.45 in a 52 week range of $65.74-$84.18. The stock has been underperforming the market over the past 12 months with shares falling just under 7% over that time period. However, options action in today’s trading session suggests that traders believe this trend will reverse and that the stock will rally through February expiration. Early this morning a trader bought 3,656 BG Feb 75 calls for $1.30. This is a very bullish trade that exposes this trader to over $475,000 in risk. This block also represents volume over 6.5 times the average daily option volume in BG. Although the chart of BG is very weak we believe that this bullish order flow is a good signal for a long in BG.
Trade: Buying the BG Feb 75 Calls for $1.40
Risk: $140 per 1 lot
Reward: Unlimited
Breakeven: $76.40