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August 16, 2012  Thu 4:14 AM CT

HUN: SEE CHART GET CHAIN FIND STRATEGIES
Huntsman options lit up early yesterday and remained active throughout the session.

Our tracking systems detected buying in the September 14 calls for $0.65, the September 15 calls for $0.20 to $0.50, and the September 16 calls for $0.25 to $0.30. Volumes were above previous positioning in all three strikes as investors look for the stock to rally in the next month.

Owning calls locks in the purchase price for the stock, so they can generate some major leverage if it rallies. But if it doesn't, these options can lose most or all of their value.

HUN was up about 3 percent at the time of the call action and continued to climb until closing at $14.48, a gain of 6.63 percent on the day. The company engages in the manufacture and sale of chemical products worldwide.

More than 40,000 options traded in the name, compared with about 3,200 in an average session. Calls outnumbered puts by about 10 to 1, a reflection of the bullish bias.

(A version of this post appeared on InsideOptions Pro yesterday.)
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