E. I. du Pont de Nemours and Company (DD), commonly referred to as DuPont, is an American chemical company that was founded in July 1802 as a gunpowder mill by Éleuthère Irénée du Pont. DD is currently trading around $68.88 in a 52 week range of $56.46 – 69.75. The company’s stock has been underperforming the market this year with shares up 5.96% year to date. Options traders seem to think that this trend will continue as order flow in DD has been decidedly bullish during the last few trading sessions. On Monday, a trader bought 2000 DD Fri 9/26 65.5 Calls (Wkly) @ $0.52. This is a bullish order and involved this trader laying out $100,000 in total premium. The stock rallied today on news that Trian Fund, a significant stakeholder in DuPont, launched a campaign to break the chemical giant into two separate businesses.

The Trade:
Buying the DD Fri 9/26 65.5 Calls (Wkly) @ $0.52 debit
Risk: $52 per 1 lot

Greeks of this Trade:
Delta: Long
Gamma: Long
Theta: Short
Vega: Long

(Full disclosure: I have no position on in this stock)

Andrew Keene
KeeneOnTheMarket.com

Pin It on Pinterest

Share This

GET OUR FREE DAILY TRADING VIDEOS

Delivered to your inbox!

You should get your first video tomorrow!