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Bears won't back off LyondellBasell

David Russell (david.russell@optionmonster.com)

For the second session in a row, traders are taking downside positions in chemical producer LyondellBasell.

optionMONSTER's Depth Charge monitoring system detected the purchase of 9,000 August 65 puts for $3.24. An equal number of August 62.50 puts were sold for $2.24.

Some 9,000 of August 62.50 puts were bought yesterday for about $2.85, resulting in big open interest today. So there are two possible explanations for the activity.

One is that the same investor exited the 62.50 puts today and rolled the position to the higher strike. Alternatively, both legs of the trade may have been initiated today, in which case it was a bearish put spread .

Either way, today's trade cost $1 and is looking for a drop in the share price. (See our Education section)

LYB is up 1.88 percent to $66.25 in midday trading and is up 70 percent in the last year.

Total option volume is 7 times greater than average so today, according to the Depth Charge. Puts outnumber calls by 84 to 1.

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