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Bulls look for more upside in Olin

Posted
11/21/2013 5:45:00 AM
By: optionMONSTER
Referenced Stocks:OLN

Olin's been running higher, and traders apparently believe that the move will continue.

optionMONSTER's Heat Seeker monitoring system detected the purchase of 2,000 January 25 calls for $0.75 and the sale of an equal number of December 25 calls for $0.40. Volume was below open interest in the nearer-dated contracts, which suggests that an existing position was closed and rolled forward in time.

Long calls lock in the price where shares can be purchased, providing cheap upside exposure to the producer of chemicals and gunpowder. Adjusting the trade cost $0.35 but gave the investor an additional month to profit from a rally. (See our Education section)

OLN fell 1.42 percent to $24.38 yesterday but has been rallying strong since reporting better-than-expected earnings on Oct. 28.

Total option volume was 5 times greater than average in the session, according to the Heat Seeker. Calls outnumbered puts by more than 90 to 1.