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Bulls Are on a Roll With LyondellBasell

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LyondellBasell Industries is pushing a 52-week high, and traders are rolling with the name.

OptionMonster’s tracking systems detected buying in the October 55 calls for $1.15, while the September 52.50 calls were sold for $0.80. It looks as if traders were closing the September contracts and opening a long position at the higher strike.

Calls lock in the price where they can buy shares in the chemicals company, which manufactures polymers, refines crude oil, and produces gasoline-blending components. By adjusting the options forward in time, the traders won’t have to purchase the stock at expiration this Friday and can keep riding the rally without needing to own shares.

LyondellBasell shares rose 1.08 percent to $52.50 yesterday after RBC initiated coverage of the name with an “outperform” rating. At one point during the session it traded as high as $53.62, not far from the record high of $53.77 reached last week.

More than 10,800 contracts traded yesterday, compared with 2,500 in a typical session. Calls outnumbered puts by more than 4 to 1, indicating the bullish sentiment.

—By CNBC Contributor Pete Najarian

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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC’s “Fast Money” and co-founder of OptionMonster.com. Najarian has no positions in LYB.

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