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Kraft Heinz Options Investors Foiled by Poorly Timed Put Sales

From bnnbloomberg.ca

Kraft Heinz Co. shareholders aren’t the only ones feeling the sting of the stock’s record single-day drop. Whoever sold March $50 put options in the days leading up to the earnings report that triggered the slump are missing out on 425 percent gains. It appears that almost half of the 27,000 contracts initially bought in late January were sold earlier this week, potentially leaving more than 1 million shares unhedged. The ketchup maker’s shares plunged as much as 28 percent to an all-time low of $34.51 on Friday after fourth-quarter earnings missed the lowest estimates and the company wrote down the value of some of ... (full story)

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