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October 4, 2013  Fri 4:14 AM CT

HFC: SEE CHART GET CHAIN FIND STRATEGIES
A complex call spread topped yesterday's option activity in oil refiner HollyFrontier.

optionMONSTER's Heat Seeker system shows that a trader bought 2,850 January 45 calls for $1.55 and sold the same number of November 44 calls for $0.95. Volume was multiples of the previous open interest at each strike, so this is a new diagonal spread.

The sale of the nearer-term options indicates that the trader sees limited upside in HFC before that November expiration but is looking for longer-term gains. (See our Education section)

HFC fell 0.88 percent to $41.81 yesterday, the middle of its recent range. It was above $44 a month ago and higher than $46 in late August.

More than 8,200 HFC options traded yesterday, almost triple its daily average over the last month.
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As we continue to discuss the Greeks, we come to the first of the strike based Greeks called Gamma. Gamma is known as the second derivative, while delta is the first.

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