LyondellBasell Industries has been ripping higher along with the rest of the chemical sector, and one investor is positioning for the rally to continue.
optionMONSTER's Heat Seeker tracking system detected the purchase of about 3,800 September 40 calls, most of which priced for $3.50. An equal number of June 37.50 calls was sold at about same time for $4 against existing open interest.
This indicates that a position was rolled from June to September. The trade let the investor collect a credit of $0.50 while receiving another three months of upside exposure to the stock, which has more than doubled since the summer.
LYB, which has been on a tear since emerging from bankruptcy protection a year ago, closed yesterday up 3.91 percent to $39.56 and rose to $40.24 in after-hours trading. Its last earnings report on Feb. 22 was complicated by some unusual items, but revenue beat forecasts amid strong demand for its chemicals, which are used in plastics and paints.
Overall option volume in LYB is 6 times greater than average, with calls outnumbering puts by more than 100 to 1.
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