Volatility play in Chicago Bridge & Iron
Chris McKhann | [email protected]
optionMONSTER's Heat Seeker system detected the purchase of 10,000 January 43 calls in a single print for $0.65. The volume was well above the open interest of 1,548 contracts, so is clearly fresh buying.
Roughly 2 minutes after the options traded, 300,000 CBI shares were sold for $40.9167. The delta of the long calls would make the overall position market-neutral, looking for greater volatility as opposed to a particular direction. (See our Education section)
CBI finished the day up 0.36 percent at $41.25, bumping up against resistance that goes back to early May. Shares bounced off support around $37 in mid-November.