The bulls piled into DuPont early yesterday, and they cleaned up
in a hurry.
Just minutes after the opening bell, optionMONSTER's Heat Seeker
tracking system detected heavy buying in the September 67.50 calls
for $0.49 to $0.55. We posted our
with about 13,000 trading, but volume in the strike would end the
session at 37,400 contracts--more than 15 times the previous open
interest, so these are clearly new positions. (optionMONSTER
co-founder Pete Najarian highlighted the unusual activity on CNBC's
lock in the price where investors can buy the chemical stock,
allowing them to position for gains at limited cost. The contracts
can also generate significant leverage if a rally unfolds, which is
exactly what happened yesterday as those September 67.50 calls
to $0.98 by early afternoon.
DD rose 1.35 percent to close at $66.20 after trading as high as
$66.95 in the session. The stock fell sharply in late June after
management cut earnings guidance, then spent a month holding above
its 200-day moving average before trying to rebound yesterday.
More than 70,000 options changed hands in the name overall
yesterday, compared to 6,600 in a typical session. Calls accounted
for a bullish 90 percent of the total.
Najarian owns calls in DD.
(A version of this post appeared on
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