Large investor doubles down on DuPont
A large trader is raising the stakes in a bullish position on DuPont.
optionMONSTER's market scanner detected the sale of 3,750 July 70 calls for $1.38 and the purchase of 7,500 July 72.50 calls for $0.63 yesterday. Volume was below open interest in the lower contracts, indicating that a bullish position was rolled to a higher strike and doubled in size.
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)
DD slipped 0.04 percent to $68.75 yesterday but is up 9 percent in the last three months. The chemical company's next quarterly results are estimated for pre-market hours on July 26.
Overall option volume was 5 times greater than average in the name yesterday. Calls outnumbered puts by a bullish 8-to-1 ratio.
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