Ashland has pulled back, and now traders are looking for the chemical stock to bounce.
optionMONSTER's Heat Seeker monitoring program detected the purchase of 2,300 August 100 calls for $1.35 to $1.60. Volume surpassed previous open interest of 1,549 contracts, which indicates new money was deployed on the long side.
Calls lock in the price where investors can buy shares, letting them control a rally at limited cost. In the case of today's trade, they will quadruple their money if the stock climbs less 5 percent by the end of next week. See our Education section for more on the leveraging power of options.
ASH rose 0.92 percent to $100.38 in afternoon trading, but is down 7.5 percent in the last month. Most of that drop came after the company reported weak quarterly revenue on July 31.
But the shares are now back to the same $100 level where they peaked in January and April, which could make some chart watchers expect a bounce. They're also close to the 200-day moving average. In another trade on Tuesday, an investor bet ASH will hold its current range.
Total option volume is slightly above average in the name, with calls outnumbering puts by more than 30 to 1.
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