OptionsHouse

Options Trading News

April 25, 2013  Thu 3:47 AM CT

CF: SEE CHART GET CHAIN FIND STRATEGIES
Shares of CF Industries rebounded sharply yesterday, and one trader is betting on more gains ahead for the fertilizer producer.

optionMONSTER's Heat Seeker system shows that a trader bought 4,950 August 210 calls for the ask price of $2.76 and sold the same number of the August 230 calls for the bid price of $0.60. Volume was above the previous open interest at each strike, indicating new activity.

This bullish call spread cost the trader $2.16, which is the amount at risk if shares remain below $210. The maximum gain is $17.84 if the stock is above $230 by expiration in mid-August. (See our Education section)

CF climbed 4.27 percent to $187.09 yesterday after seeing its lowest prices since June last week. Shares were above $230 into the start of January.

More than 16,000 CF options traded overall yesterday, quadruple its daily average of 4,000 for the last month. 
Share this article with your friends


OptionsHouse

Premium Services

Education & Strategy

Timing the Trade

Both break outs and a break downs need to have a couple things happen before it is considered a confirmed break out or break down by technical definition!  The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »