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1,000 Earnings Expiration Puts Trade in US Foods Holding Corp. (Symbol: USFD)

1,000 Earnings Expiration Puts Trade in US Foods Holding Corp. (Symbol: USFD)

Posted October 30, 2024 at 10:15 am
Jeff Praissman
Interactive Brokers

This morning 1,000 US Foods Holding Corp. (Symbol: USFD) November 15 ’24 57.5 puts traded for $0.45. The trader most likely sold the 16-delta downside puts ahead of the scheduled November 7th earnings call by looking at the NBBO at the time. Volatility is generally higher for expirations during an earnings period and the trader may be selling to take advantage of the higher-than-normal volatility.

USFD has beat earnings expectations five of the past eight cycles and the trader may have a bullish outlook on USFD and trying to take in some premium by selling the downside puts speculating that USFD will rise after the call or they may be comfortable entering a stock position at the 57.5 level if stock drops on the earnings report.

USFD is currently trading for $61.85. USFD has a 52-week high of $63.09 and a 52-week low of $38.63.

USFD is currently trading for $61.85. USFD has a 52-week high of $63.09 and a 52-week low of $38.63.

TWS. Past performance is not indicative of future results

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2 thoughts on “1,000 Earnings Expiration Puts Trade in US Foods Holding Corp. (Symbol: USFD)”

  • Roger B. Fox

    I appreciate these articles but do you have to call them “downside” puts and “upside” calls? What does that add. And actually if you’re selling puts you want the underlying to go up (or at leaset not decline) so why not refer to them as “upside” puts?

    • Interactive Brokers

      Hi Roger, thank you for asking. Downside and upside refer to the strike price in reference to the market price of the stock. Downside puts are below the stock price and upside calls are above the stock price.

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