Learn the trade here. Make it on tradeMONSTER

Options Trading News

January 22, 2014  Wed 4:45 AM CT

DOW: SEE CHART GET CHAIN FIND STRATEGIES
Dow Chemical exploded higher yesterday, and option activity went through the roof.

Almost 141,000 contracts changed hands in the name, compared with volume of 12,436 in an average session. Calls accounted for more than 80 percent of the volume, a reflection of the session's strongly bullish tone.

The largest transaction on optionMONSTER's Heat Seeker monitoring program was a call roll as an investor took profits on a winning trade. The investor sold 10,000 February 43 calls for $2.93 and bought 10,000 February 47 calls for $0.74. He or she collected a credit of $2.19 and still has the right to make money from further upside in the stock price. (See our Education section)

DOW rallied 6.64 percent to $45.93 after activist investor Daniel Loeb took a stake in the company and urged management to spin off its petrochemical business. It was the stock's highest closing price since October 2007.

The shares are also up 12 percent since getting recommended on the Dec. 12 installment our proprietary Market Action webinar. Dow is scheduled to report earnings next Wednesday, Jan. 29.

Share this article with your friends


Related Stories

DOW

Call buyers return to Dow Chemical

November 10, 2014

Traders were buying calls for the second time in a week in the chemical company, which has yet to recover all of its losses from the market's mid-October selloff.

Premium Services

Free Webinar Series

Using Options for Income

Education & Strategy

Importance of learning the basics

Personally, I could never understand how so many option instructors start teaching strategies before explaining what an option is. I...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER