PPG Industries has had consistently strong financials, and traders are looking for more upside.
optionMONSTER's Heat Seeker tracking program detected the purchase of 1,240 January 105 calls for $6.20 and the sale of 1,492 January 90 puts for $4.80. Volume is more than twice open interest in each strike.
The resulting position is similar to owning stock in the chemical company and uses income from selling the puts to offset the price of the calls. It cost about $52,600, or $0.42 per call contract bought. The position stands to make big leveraged gains if PPG rallies into early next year but will lose money if it falls below $90. (See our Education section)
PPG is up 1.02 percent to $102.03 today and more than 20 percent so far this year. The company has enjoyed strong demand from paints and coatings. Its last report yesterday beat expectations on the top and bottom lines, with strength in emerging markets and China.
Overall option volume is quadruple the daily average so far today.
Options Trading News
Social Media
Follow optionMONSTER for news and updates
Premium Services
-
Semi-active traders looking for simple calls and spreads (5 per week).
Learn More -
Entry-to-mid level traders looking for full circle trade analysis (1 per week).
Learn More -
Tailored, one-on-one education designed and led by Jon & Pete (3 months and up)
Learn More
Education & Strategy
So why do we bother with spreads?
Trading options allows for far deeper levels of complexity than stocks. And while you may never fully venture all the...
