Dow Chemical is seeing strong call activity despite a posting a weak earnings report yesterday.
Early Thursday, traders bought some 10,700 calls at the February 12.40 strike, which quickly rose in price from $0.20 to $0.35. Many of those calls (DOWBV) were bought in blocks as large as 2,448 contracts each, according to OptionMonster's real-time tracking systems.
DOW stock closed at $10.77 yesterday near its 52-week low and dropped even further to $10.18 this morning, but it has climbed back into positive territory and now trades at $10.94. The February options have 12 trading days to make a profit before expiring.
I own calls in DOW.
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Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of .