Wednesday, August 31, 2011

Trade of the Day: LyondellBasell (LYB) December $35/$43 bull call spread

The Trade

Buyer executed the December $35/$43 bull call spread 5,000x for a debit of $3.05. Maximum risk is equal to the debit. Break even is $38.05, with profit potential limited to $43. Chart below highlights break even and maximum loss for the trade.

Trade coincides with an overweight rating set for the chemicals company this morning by Barclays. Looking for a recovery from the recent broad market sell off, with significant support at $28. Graph below shows risk profile for trade.*

Special thanks to Option Radar, BMO Capital, MEB Options, Bloomberg, Reuters, Optionistics, LiveVolPro, CBOE, AMEX, Option Monster, T.O.P. group, and all of the options desks and traders we work with to provide the option flow!

No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.

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