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John Mackey, co-founder and co-CEO of Whole Foods Market
Whole Foods Market shares rose 27 percent midday Friday on the deal news.
Jon Najarian, co-founder of the Najarian Family Office, told CNBC in an email there was unusual option activity in Whole Foods Market during the month of April.
He said there was bullish call buying on Apr. 12, when a trader bought 4,500 WFM $34 August strike calls for $2.30 to $2.40. In addition, someone acquired 5,000 WFM $34 November strike calls for $3.40 to $3.45 on Apr. 18.
Najarian said the $34 August calls mentioned surged about 600 percent to $8.00 Friday from Thursday’s close, while the November $34 calls rose nearly 300 percent to $8.10.
“I think we all know Bezos is a genius. I’ll bet any of you a dollar that he did the math on the build out of the distribution/logistics needed to compete with WMT and figured that would be $5 – $7B,” Najarian wrote in an email. “And for that he’d just have nice cinder block warehouses. Thus, if I’m right, he got WFM brand and loyal customers for half price.”
Calls are options that give the owner the right to buy a stock at a given price within a specific period of time.
Disclosures: Jon Najarian was long WFM August and November 34 calls and exited the positions Friday at a profit. He is a frequent guest on CNBC’s “Fast Money: Halftime Report.”