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Options Trading News

January 25, 2013  Fri 8:24 AM CT

UTX: SEE CHART GET CHAIN FIND STRATEGIES
Some investors have rung up some quick winners in United Technologies, which has been plowing higher for months.

Shortly after the opening bell on Wednesday, optionMONSTER's Heat Seeker tracking system detected the purchase of almost 4,000 Weekly 87.50 calls in the industrial company. The initial blocks priced for just $0.54 and had less than three sessions before they expired.

But that proved plenty of time for the calls to work. UTX was trading at $87.95 when the trades first hit, then pressed higher to close the session up 0.97 percent at $88.92.

That paled in comparison to the performance of the calls, which wound up trading as high as $1.35 yesterday afternoon--a gain of 150 percent relative to the initial outlays. The fact these gains occurred from such a small move in the share price illustrates the kind of leverage that can be achieved with options.

(See our special Trading Weeklies page to track the fastest money in the market.)
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