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LyondellBasell gets more room to run

David Russell (david.russell@optionmonster.com)

LyondellBasell Industries is back near its highs, and one big investor wants to give the stock more room to run.

optionMONSTER's trade scanners detected the purchase of some 2,000 December 77.50 calls for $2.40 and the sale of an equal number of January 80 calls for $1.80 today. Volume was below open interest at the lower strike, which suggests that an existing short position was rolled higher in price and out in time.

The trader probably owns shares in the Dutch chemicals company and sold the options as part of a covered-call strategy . Adjusting the position today cost $0.60 but could earn an additional $2.50. (See our Education section)

LYB is up 0.37 percent to $78.86 in afternoon trading and has been climbing steadily for more than two years. Poor results for the last several quarters have failed to slow the bullish momentum. It peaked at $79.34 in October, so today's investor is positioning for a potential breakout by early next year.

Total option volume is twice the daily average so far today, according to the Heat Seeker. Calls outnumber puts by 17 to 1.

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