OptionsHouse

Options Trading News

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.)
Share this article with your friends


Related Stories

HUN

Huntsman attracts long-term bet

July 13, 2015

The chemical producer fell steadily after hitting resistance at its 200-day moving average in the second half of June, but shares have bounced in recent days.

HUN

Notable option activity in equities

July 10, 2015

At the halfway mark in today's session, here are the individual equity names with unusual option activity on optionMONSTER's ActionTracker data system.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Options Academy: At the Break

So far, my articles have taken you through a logical progression of option theory and fundamental concepts of options. As of yet, I have not mentioned a single strategy and for a good reason! The actual application of a strategy should come AFTER you learn about the option product itself.

View more education articles »