Domtar Corporation (UFS) Shows Some Very Profitable Order Flow

Domtar Corporation (UFS) is a consumer paper goods manufacturer and distributor based in Montreal, Quebec. At the time of this post (11:00AM CST), UFS is currently trading at 44.87, up 2.87% on the day. The stock is currently within the lower-middle portion of its 52 week trading range of 33.04-57.88, though it has rallied to close higher the last five consecutive sessions since breaking out over the 40.00 resistance level on the daily chart on February 6th.

Earlier today a trader bought 1,189 UFS Apr 45 calls for $1.85. This order represents 19.5 times the average daily options volume in UFS. I bought some of these calls for $1.85 and have already taken a profit target in them at $2.00. UFS stock ripped to session highs as soon as this order hit the tape so there are many ways a trader could have traded it for profit. These calls have already traded as high as $2.15 today making this an extremely profitable trade in a very short amount of time.

Trade: A trader bought 1,189 UFS Apr 45 calls for $1.85
Risk: $185 per 1 lot
Reward: Unlimited
Breakeven: $46.85

Andrew Keene

Submit a Comment

Your email address will not be published.


Your ultimate source of knowledge about the markets.

Recent Posts

Get Our Free Daily Trading Videos

Delivered To your Inbox

By submitting your information you agree to our Terms of Service and our Privacy Policy