One trader apparently thinks that LyondellBasell Industries is
going nowhere in a hurry.
optionMONSTER's tracking programs detected the sale of about 2,800
contracts each in the September 55 puts for $2.15 and the September
70 calls for $1.40. That amounts to a total credit of $3.55.
The investor will keep that amount as profit if the chemical stock
remains between $55 and $70 through expiration. Gains will erode
outside that range, turning to losses below $51.45 and above
$73.55. (See our
section for more on the strategy, known as a
LYB rose 1.22 percent to $62.30 yesterday. The chemical company
rallied more than 40 percent in the second half of 2012 but has
been swinging in a range since. It made a lower low in April than
in February and now appears to have made a lower high. That could
be leading some chart watchers to think that it's losing momentum
and to support a neutral view.
Yesterday's total option volume in the name was triple its daily