Options Trading News

September 22, 2016  Thu 11:21 AM CT


Chicago Bridge & Iron has fallen sharply in recent months, but traders are looking for a comeback.

optionMONSTER's tracking program detected the purchase of about 7,400 November 30 calls for $0.50 to $0.65 today. This represents fresh buying, as open interest in the strike was just 198 contracts before the session began.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

CBI is up 2.05 percent to $26.93 in midday trading but is down 27 percent in the last three months. The engineering and construction company is expected to report earnings after the close on Oct. 27.

Overall option volume is 3 times greater than average in the name today. Calls outnumber puts by a bullish 8-to-1 ratio.

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Support seen for Chicago Bridge & Iron

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Traders see long-term support in the engineering and construction company, which has dropped 22 percent in the last three months.


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