OptionsHouse

Options Trading News

December 11, 2012  Tue 2:14 AM CT

CBI: SEE CHART GET CHAIN FIND STRATEGIES
Chicago Bridge & Iron has been running higher in recent weeks, and a large trader apparently expects the energy-services construction company to make a sharp move up or down.

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.
Share this article with your friends


Related Stories

CBI

Chicago Bridge & Iron draws puts

April 15, 2015

Traders are positioning for a possible pullback in the engineering and construction company after it reports earnings next week.

OptionsHouse

Premium Services

Education & Strategy

Investor deficiency in premium collection

Most investors have heard about selling options as a form of income generation. You hear it from brokers and financial advisors as a way to generate income without selling off pieces of your nest egg, dwindling through your retirement accounts, and then being stuck figuring out how to financially afford the rest of your life...

View more education articles »