Huge trade takes a swig of Anheuser-Busch

An enormous trade is looking for Anheuser-Busch to rally by the end of summer.

Investitute’s tracking systems showed today that 30,000 September $125 calls were bought in one print for $1.40 while shares traded for $109.99. This is clearly a new purchase, as open interest in the strike was only 1,451 contracts before the trade occurred.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

Today’s call purchase was the session’s largest single option trade in any company name. It is looking for the beer giant’s shares to rise above $126.40 by expiration in mid-September, returning to a level not seen since October 2016.

BUD fell 0.79 percent today to close at $109.95. The stock is up on the year but has been grinding sideways for the last month.