DuPont’s Call Options in High Demand

DD – E.I. du Pont de Nemours & Company – Call options on the third-largest U.S. chemical maker are in high demand this morning with shares of the underlying stock increasing more than 5.5% to secure a new 52-week high of $41.14. DuPont’s shares surged at the start of the session after the firm raised its full-year earnings estimate and posted better-than-expected second-quarter profits of $1.17 a share, which topped average analyst forecasts of $0.94 a share. Near-term bulls itching for continued upward momentum in DD’s shares purchased approximately 2,100 calls at the August $41 strike for an average premium of $0.71 per contract. Call buyers stand ready to accumulate profits as long as the chemical manufacturer’s shares rally 1.4% over the new 52-week high of $41.14 and trade above the average breakeven price of $41.71 by expiration day in August. Options implied volatility on the stock declined 6.5% to 25.51% by 12:30 pm (ET) following earnings.

About Andrew Wilkinson 1023 Articles

Affiliation: Interactive Brokers

Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.

Interactive Brokers: Interactive Brokers offers direct market access to around 80 electronic global markets from a single account. Successful traders and investors understand that superior technology and lower trading costs can result in greater returns. For 32 years we have been building direct access trading technology that delivers real advantages to professionals worldwide. With consolidated equity capital of US $4.4 billion, IB and its affiliates exceed 1,000,000 trades per day. In addition, our prudent and conservative risk policies make Interactive Brokers a safe haven for your money. Discover some of the reasons why IB, the largest independent US broker/dealer, is the professional traders' and investors' choice.

Visit: Interactive Brokers

Be the first to comment

Leave a Reply

Your email address will not be published.