Air Products & Chemicals has been flying, and the bulls are looking for more.
optionMONSTER's Heat Seeker monitoring program detected the purchase of 3,500 December 130 calls for $6.60 and the sale of a matching number of July 130 calls for about $1.45. Volume was below open interest in the shorter-dated contracts, so it appears that an existing position was closed and rolled forward in time.
Long calls lock in the price where a stock can be purchased, letting investors cheaply position for a rally. Capital can also be swapped from one contract to another, maintaining a bullish trade at limited cost. (See our Education section)
Today's transaction cost $5.15 and provides an additional five months of upside exposure in the provider of pressurized industrial gases. Making the adjustment also eliminated the danger of accelerating time decay that will affect the July contracts over the next three weeks.
APD is up 0.23 percent to $128.92 in afternoon trading and has risen 15 percent so far this year. Much of that move occurred on June 18 after the company hired Seifi Ghasemi as CEO, a move that investors interpreted as evidence that management will obey the wishes of activist investor Bill Ackman.
optionMONSTER subscribers have already made money in the name, earning more than 35 percent in the January 135 calls after the news came out.
Total option volume is triple the daily average so far, with calls outnumbering puts by more than 20 to 1.
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