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Bulls come back to Air Products

David Russell (david.russell@optionmonster.com)

For the second day in a row, the bulls are active in Air Products & Chemicals.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 3,500 April 120 calls for $3.30. Roughly 4,000 March 120 calls were sold for $1.89 at the same time, but volume was below open interest. That suggests an existing position was closed and rolled forward in time.

Such long calls lock in the level where a stock can be owned, which makes them follow movements in the underlying price. Investors can control large numbers of shares for a relatively low price as well, rotating capital from one contract to another as a company appreciates in value. (See our Education section for more on how to manage risk with options.)

APD is down 0.33 percent to $119.36 in afternoon trading has risen 35 percent in the last year. The provider of compressed gases has been steadily trending higher as the company lowers costs and has now broken back above its previous all-time high from mid-2008.

Today's transaction cost about $400,000 and provides the investor with an additional month of upside exposure. Their position has the potential to control as much as 350,000 shares.

Total option volume is 4 times greater than average in the session, with calls outnumbering puts by more than 18 to 1.

There was also bullish activity yesterday as investors purchased more than 10,000 January 135 calls, also looking for the shares to keep rallying into early 2015.

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