$HAIN keeps feeding the bulls

Option traders cashed in on upside positions in food company Hain Celestial today for the second session in a row.

On Feb. 14, Investitute’s tracking systems detected the purchase of 2,983 March $18 calls in one print for $0.58 as part of a bullish roll with shares at $17.53. This was clearly a new position, as volume was well above the strike’s previous open interest of 1,398 contracts.

Those calls traded for as much as $1.58 today, more than 2.5 times their purchase price. The stock rose 10.38% in the same time frame, illustrating the kind of leverage that can be achieved with options.

It was the second winning trade in the name posted on Investitute in as many days. On Feb. 7, Investitute co-founder Pete Najarian cited buying in the January 2021 $20 calls, which have more than doubled in price.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

HAIN climbed to $19.73 this morning before pulling back to close at $19.25, off 2.14% on the session. JP Morgan upgraded the organic-food producer to “overweight” from “neutral” yesterday and raised its price target to $20 from $15.