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Posts tagged ‘Diamond Foods’

Diamond Foods Spiking 6% After Big Sell Off Yesterday!! Call Options?! By: Tim Bolger

Just a quick note on Diamond Foods(DMND). I posted an article yesterday: http://optionshoney.com/2012/02/09/big-shake-up-at-diamond-foods-this-is-totally-nutz-ceo-and-cfo-are-out-options-honey/recommending that investors buy shares of the San Francisco snack food maker on a huge 42% decline in the shares. DMND is up close to 6% today, on a day in the red across all the major U.S. stock indexes.  Additionally, I suggested buying the Call Options on DMND to take advantage of yesterday’s tremendous share weakness.  I bought the Feb 17, 2012 $23 strike Call Options for $1.45 yesterday and hope that a few other traders jumped on that train. Well, I know alot of Wall St. Pros are all over this big trade and yesterday was a record volume day for Options traded on DMND foods, but I hope a few Optionshoney lovers are making money on this trade as well. Forbes reports: Plunge In Diamond Foods Yields Feast Of Options Trades at Forbes(Fri 10:07AM EST). Consider locking in profits today as these DMND Options contracts are trading 61% higher over night:http://finance.yahoo.com/q?s=DMND120218C00023000. Always remember that pigs get slaughtered…no need to be greedy and it’s a very smart move to take 60% of our profits off the table on this rally in DMND shares and the Call Options…But, this stock may run to 28 by the Feb 17th expiration next week and we could still see huge upside in the value of these Call Options contracts. Options are risky financial instruments and please consult your investment advisor before buying any Options contracts or stocks that I research/trade on this site.  Stay tuned for more action at Optionshoney.com.

Check out the 2 day chart on DMND courtesy of Fidelity Investments:

Chart

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Big Shake-up at Diamond Foods…This is Totally Nutz!!! CEO and CFO are Out?!. Options Honey?! By: Tim Bolger

Shares of San Francisco based snack food maker Diamond Foods(DMND) tanked over 42% on huge volume this morning after the company announced yesterday evening that they would have to restate there 2010-2011 financial statements following the negative results of a 3 month Audit investigation that was not favorable for DMND shareholders in the short term… The audit was conducted because of an alleged accounting scandal over the momentum payment from DMND to its Walnut growers.. To put the icing on the cake, the CEO and CFO are being removed from the company.  Definitely not a fun day for those long the stock…However, I still love Diamond Foods Wasabi Almonds and the rest of their yummy products. So, I bought shares of the stock on all of this bad news today.  Consumers will continue to gobble up there tasty nuts around the globe for sure and this is a short term thunderstorm for the company that provides a great opportunity to buy the shares at a deep discount….

So what is the Options play?!  Diamond Foods: http://www.diamondfoods.com. Check out this article written by the Wall St. Journal today on Diamond Foods. The WSJ reports a record trading volume day in Put and Call Options on Diamond Foods Inc.: http://blogs.wsj.com/marketbeat/2012/02/09/taking-a-bullish-flyer-on-diamond-foods/?mod=yahoo_hs.

WSJ Reports: Diamond Food CFO’s To-Dos: Restate, Then Rebuild…

 http://blogs.wsj.com/cfo/2012/02/09/diamond-food-cfos-to-dos-restate-then-rebuild/?mod=yahoo_hs

I purchased the Feb 17, 2012 $23 strike Call Options on DMND today for $1.45 a contract and would be a buyer of the longer term Call Options as well. Attached is the Options Chains for the DMND June 15, 2012 Put/Call Options courtesy of Yahoo Finance:  http://finance.yahoo.com/q/op?s=DMND&m=2012-06. I would be a buyer of the DMND $22.50 strike Call Options for $3.40.  I am also a buyer of the stock under $23  a share and believe it is a great long term investment.  I love San Francisco and love this SF Nut Company!!! The Pringles acquisition may not happen now because of this terrible news today…however, I would personally prefer the company not to purchase Pringles from Procter and Gamble and feel that DMND is paying way too large a premium for this brand name chip franchise. Reuters reports:Procter & Gamble likely to terminate Pringles deal with Diamond Foods, NYT saystheflyonthewall.com (Thu 11:47AM EST).  Stay tuned to Optionshoney.com for more Options plays… 🙂

Check out the ten day chart of DMND courtesy of Fidelity Investments:

Chart

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