Khouw said UBS upgraded the logistics company on Wednesday. Although the analyst expects freight shipments to decline, he upgraded the stock because the price of trucking could drop enough to help C.H. Robinson increase its margins a bit.
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The call options volume was higher than average, it traded more than four times its daily average call options volume and there was one traded that caught Khouw's attention.
There was a purchase of 2,000 contracts of the April $70/$75 call spread for $1.20. The trade breaks even at $71.20 or around 7% above the closing price on Wednesday. The trade can maximally make $3.80, if the stock jumps to $75 or higher by the April expiration.
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