C.H. Robinson Worldwide pulled back to support yesterday, and
the bulls piled in.
optionMONSTER's Heat Seeker system detected heavy buying in the May
60 calls, with a block of 5,000 contracts purchased for $1.20
shortly after the open. Those options
lock in the price
where investors can buy shares, so they have the potential to
generate significant leverage from even a small move in the stock
That's exactly what happened in yesterday's session. The logistics
and shipping company pushed higher and those calls ratcheted up in
price, fetching as much as $1.76 in the afternoon. That's a gain of
more than 40 percent from a low-single digit move in the share
price. (See our
CHRW ended the session up 2.8 percent to $57.19. The move came
after the shares retreated to the same level where they bounced in
September. There was also a strong rally in the broader
transportation sector, which also saw bullish option activity in
Expeditors International of Washington
More than 5,500 of the May 60 calls changed hands in C.H. Robinson
yesterday, more than 5 times the strike's open interest before
yesterday's trading began. Overall option volume in name was
equally impressive at more than 16,000 contracts, with calls
accounting for more than 90 percent of the total.
(A version of this post appeared on
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