Upside position refined in CVR Energy


One investor is refining a bullish position in CVR Energy with the shares near a record high.

optionMONSTER's Heat Seeker monitoring system detected the purchase of 3,250 October 37.50 calls for $1.20 and the sale of 2,500 October 35 calls for $2.60. Volume was below open interest in the 35s but not the 37.50s, suggesting that a long position was rolled from one strike to the other.

A credit of $260,000 was collected, letting the investor recover some or all of the initial investment. He or she also boosted the number of contracts owned, which will increase leverage if the rally continues.

CVI rose 2.25 percent to $36.86 yesterday and is up 47 percent in the last three months. The Texas-based refiner has been climbing along with others in its industry as gasoline prices have surged and is now less than a dollar below its all-time high of $37.52 established on Friday.

Total option volume was 5 times greater than average in the name, with calls outnumbering puts by a bullish 141-to-1 ratio.

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