LyondellBasell Industries has been going straight up, and one
investor is adjusting a profitable trade.
optionMONSTER's Heat Seeker monitoring system detected the purchase
of about 3,000 September 52.50 calls for $0.50 and the sale of an
equal number of September 50 calls for $1.25. Volume was below open
interest in the 50s but not the 52.50s, which indicates that an
existing long position was rolled to the higher strike.
The investor collected a credit of $0.75 and stands to profit if
the shares continue to push higher. He or she probably bought the
50s when the stock was lower and adjusted the position to recover
some of their cash. See our
for more on how options can be used to manage risk.
LYB rose 1.26 percent to a new all-time high of $49.86 yesterday
and is up more than 75 percent in the last year. Weakness in Europe
hurt the chemical company earlier in the year, but results improved
in the second quarter as low natural-gas prices in the U.S. boosted
Overall option volume was triple the daily average, with calls
outnumbering puts by more than 10 to 1.
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