Dow Chemical is trading at its highest levels in more than two years, and the bulls are looking for more gains by early next year.
OptionMonster's tracking systems identified heavy buying in the January 42 calls, where more than 8,100 contracts traded for $0.98 to $1.10 yesterday. The volume was well above the strike's open interest of 1,974 before the session began, indicating that new positions were initiated.
These calls can provide a relatively inexpensive way to profit from a rally without necessarily purchasing the stock. But if shares remain below the $42 strike price through mid-January, they could expire worthless.