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May 9, 2013  Thu 2:45 AM CT

TROX: SEE CHART GET CHAIN FIND STRATEGIES
A large call spread dominated yesterday's option activity in Tronox before the global titanium producer reported first-quarter results after the close.

optionMONSTER systems show that a trader bought 9,500 November 22.50 calls for $2.15 and sold the same number of November 30 calls for $0.45.

This vertical spread cost the trader $1.70, which is the amount at risk if TROX remains below $22.50 through mid-November. The maximum gain would be $5.80 if shares are at or above $30 at that expiration. (See our Education section)

TROX gained 2.48 percent to close at $21.88 yesterday, bringing it back up to resistance that has been in place since October. Shares were last above $30 in June, then fell below $15 into December.

The stock apparently did not move in after-hours trading. Management is scheduled to discuss the earnings report on a conference call today at 8:30 a.m. ET.

More than 24,000 TROX options traded on the day, compared to a daily average of just 384 in the last month.

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