C.H. Robinson Worldwide has been gradually working its way higher, and one investor is going along for the ride.
optionMONSTER's tracking systems detected the purchase of 10,378 August 75 calls for $3.30 and the sale of an equal number of January 80 calls for $3.10. Volume was below open interest in the August contracts but not in January, which suggests an existing short position was rolled from one strike to the other.
The trade was probably the work of an investor who owns shares in the logistics company and had sold the calls to earn income. Rolling them today will let them garner an additional $5 of upside on the stock. They paid $0.20 now and will have to hold the position for an additional four months.
CHRW rose 0.05 percent to $78.87 in afternoon trading. The company, which coordinates air, land, and sea transportations, has been in a steady uptrend since the late 1990s. Its last earnings report on April 26 missed forecasts, though revenue was stronger than expected.
Today's call roll was similar to a transaction in January. Such trades often appear on companies in steady uptrends, letting investors earn extra income, reduce cost and manage risk. (See our Education section)
Overall option volume in CHRW is 22 times greater than average so far today.
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