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What's behind Huntsman call sale

David Russell (david.russell@optionmonster.com)

One investor is turning time into money with chemical producer Huntsman.

optionMONSTER's monitoring programs detected the sale of 30,720 May 21 calls for $1.98 and the purchase of an equal number of February 21 calls for $1.36. Volume was below previous open interest in nearer-dated contracts, which indicates that an existing short position was closed and rolled forward in time.

The trader probably owns HUN shares and is using the options as part of a covered-call strategy . It's noteworthy that an in-the-money strike was chosen, capping potential gains. Making the adjustment brought in an additional credit of $0.62. (See our Education section)

HUN is up 0.44 percent to $22.58 in late morning trading. It rallied from $18 to $24 in the last four months of 2013 but has been drifting lower since. Today's option trader isn't at risk of losing money unless the shares drop below $21. (See our Education section.)

Total option volume is 13 times greater than average so far in the session.

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