Archer-Daniels-Midland Co (NYSE:ADM) shares are up 2.8% to trade at $63.60 at last check, with President Donald Trump's threatened cooking oil embargo on China giving U.S.-based agriculture stocks a boost.
ADM already sports a 26% year-to-date lead, and is today on track for a third consecutive gain. The equity earlier hit a 12-month high of $64.57, though overhead pressure at $65 has been keeping a lid on further gains.
The security could benefit from a shift in sentiment, as 10 of the 11 analysts in coverage carry "hold" or worse ratings. Plus, the 12-month consensus target price of $58.38 is a 7.8% discount to current levels. This leaves the door open to price-target hikes and/or upgrades.
Options traders lean bullish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day call/put volume ratio of 2.88 sits higher than 78% of annual readings. This means calls have been getting picked up at a much quicker-than-usual pace.
Calls are particularly popular today, with 9,139 exchanged so far today -- 4 times the intraday average -- compared to just 647 puts. Most popular by far is the October 62 call.
