Hunting Premium in Mondelez International

MDLZSome of the food brands for Mondelez above.

I have been working up a trade in $MDLZ and as part of this process I have reviewed the Option chains out to January 2015. I had this setup labeled as breakout play but wanted to get a glimpse at what others may be thinking.

Here are a few of the Option chains with some notable action:

MDLZ_May31w_Options MDLZ_June_OptionsUh oh.

Big footprints in June at the 28 Put strike. There are over 100,000 contracts sitting in Open Interest. Gulp. This makes me pause to rethink the breakout play strategy as I need to determine why traders are Bearish for June – and picked this strike.

MDLZI have noted the last breakout level with a Green line. As you can see, the nearest moving average to this $28 level is the 200 SMA (currently at 27.78). Worth noting that.

For now I am going to sit idle on finishing up a trade setup – to see how price handles a test of the rising 50 SMA (looks like a test very soon).