Chicago Bridge & Iron Company N.V. (CBI) is a Dutch corporation that provides design, engineering, manufacturing and various infrastructure support services for other companies in the global energy sector. At the time of this post (1:10PM CST), CBI is currently trading at 40.46, up 4.57% on the day. The stock is currently trading firmly within the lower portion of its 52 week trading range of 32.16-89.22, and has remained in a significant downtrend over the course of the past year, as declining oil prices have weighed heavily on most stocks with any connection to the energy sector.
Earlier this morning, at approximately 8:51AM CST. OptionHacker detected and flagged some unusually bullish options activity in the Feb ’15 40.5 strike calls that preceded the stock’s significant run up on the day. Just moments into this morning’s trading session, a trader came in and bought a large block of 2,191 of the CBI Feb ’15 40.5 calls, lifting the offer at 0.30 across multiple exchanges. Going off against an open interest in the strike of just 16 contracts, we can be confident that this was an opening transaction looking to profit from an immediate upside move in CBI, with just over three trading days left until expiration in this weekly option contract. At the time of this trader’s purchase, CBI was trading at 38.90, but has since rallied over a point and a half, pushing the option as high as 0.90 on the day, or over a triple in value from this trader’s timely entry. With an initial cash outlay of approximately $65,730 before commission costs, this trader does not look to have sold any of this long call position yet, and may be looking for continued upside going into the end of the week, as CBI currently sits just below 40.50 resistance on the daily and intraday charts.
Earlier today a trader bought 2,191 CBI Feb 40.5 Calls for $0.30
Risk: $30 per 1 lot
The stock ripped after these calls were bought and they have already traded as high as $0.90 on the trading day making this an extremely profitable trade. A trader could have tripled their money in a matter of hours in this trade.