W.R. Grace has been going straight up for years, but one trader
is bracing for a pullback.
optionMONSTER's Depth Charge tracking program detected the purchase
of 4,500 March 65 puts for an average premium of $2.28. The
transaction came less than one minute after an equal number of
March 60 puts were sold for $1.05 in volume under previous open
This suggests that the investor had previously owned the 60s, which
were closed and rolled to the higher strike. The move cost him or
her $1.23 and provides an additional $5 of
. (See our
GRA slipped 0.15 percent to $67.99 yesterday but is up 48 percent
so far this year. The chemical company's earnings have repeatedly
beaten analyst estimates amid strong demand from Latin America and
as management raises prices. It's spent most of December hovering
in its current range near all-time highs, which could make some
traders think that it's at risk of a reversal.
Total option volume was 13 times greater than average in the
session, according to the Depth Charge. Puts accounted for more
than 80 percent of the total.
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