Learn the trade here. Make it on tradeMONSTER

Options Trading News

May 1, 2012  Tue 3:14 AM CT

SHAW: SEE CHART GET CHAIN FIND STRATEGIES
Shaw Group recently got a big contract win, and buyers lit up the July options.

The July 34 calls saw strong activity, with investors paying $0.69 to $0.75. More than 4,000 of those contracts changed hands against open interest of 100 contracts--not off the charts, but still heavy for a name that usually trades fewer than 1,300 contracts a day.

Those calls lock in the price investors must pay to buy shares, so they can provide a lot of leverage if the construction company rallies into the summer. But if the stock doesn't move enough, they could expire worthless. (See our Education section)

Shaw closed at $30.27 yesterday, up 0.97 percent. Last week it received notice from South Carolina Electric & Gas to proceed on its engineering, procurement, and construction contract for two Westinghouse AP1000 nuclear power units and related facilities.

More than 7,500 calls traded in the name yesterday versus just 104 puts, a reflection of the session's bullish sentiment.

(A version of this post appeared on InsideOptions Pro yesterday.)

Share this article with your friends


TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Options and high-frequency trading

There has been much talk lately of high-frequency trading (HFT) and what it does--or doesn't--mean to the markets and retail...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER