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October 30, 2013  Wed 2:18 AM CT

An odd call trade made up all of the option volume in propane distributor UGI yesterday.

Just shy of 7,000 UGI options traded in the session, compared with the daily average of just 108 contracts. One trade made up all of the volume with 2,027 January 40 calls bought for $2.65 against open interest of 5,314. Seconds later 4,907 April 45 calls were sold for $0.65. That volume was twice the previous open interest at that strike, so it was a new opening position.

This could be a complex strategy, combining a ratio spread with a diagonal spread in what would be bullish up to $45. Or a short-call position might have been rolled higher and doubled the size. In that case, the trader probably owns shares and raised ther eventual exit price by $5. (See our Education section.)

UGI fell 0.21 percent to $42.08. Monday's close was the highest since early August as shares retreated from their 52-week highs. Two weeks ago, the stock was below $38.
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