Bullish Order Flow Pays off in Westlake Chemical Corp. (WLK)

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Westlake Chemical Corp. (WLK) is a Houston based chemical and fabricated building material manufacturer. At the time of this post (10:55AM CST), WLK is currently trading at 67.54, up 1.66% on the day. The stock is currently trading within the lower portion of its 52 week trading range of 53.43-98.44, though over the course of the past month it managed to breakout above and hold over the key 60.00 price level on the daily chart. WLK opened this morning’s trading session with a gap lower, down to around 65.00, but has since managed to rally back and is currently trading just off the intraday highs.

Earlier this morning at approximately 8:51AM CST, OptionHacker detected and flagged some unusually bullish options activity in WLK as a trader came in and bought a large block of 2,000 of the Mar ’15 70.0 strike calls for 1.10. This trader lifted the offer across multiple exchanges, in a sweep transaction that represented a 4.5X average daily options volume in WLK and went off against a minuscule open interest of just 17 contracts in this strike. We can confidently surmise that this was an opening bullish transaction, looking to profit from a continued rally in WLK over the next month, with just over 29 days left before the March monthly options expiration. With an initial cash outlay of about $220,000 before commissions, this trader’s timely purchase was rewarded almost immediately, as just over two hours into this trade, these call options have already traded as high as 1.90 as WLK continues to press the intraday highs. It appears at the moment that this trader is continuing to hold this profitable position, and we will be closely monitoring WLK for potential continued upside as we move into the coming month.\

Trade: A trader bought the WLK Mar 70 calls for $1.10
Risk: $110 per 1 lot
Reward: Unlimited
Breakeven: $71.10

These calls have already traded as high as $1.88 on the session making this trade an absolute blowout winner. Another great trade from OptionHacker!

Andrew Keene
President/Founder KeeneOnTheMarket.com

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