Bulls Take a Shot on Brazil's Braskem

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Braskem is trading near 52-week highs, and yesterday the option paper was bullish on the Brazilian petrochemical company.

OptionMonster's tracking programs show that traders paid $0.60 and $0.65 for the June 17.50 calls. More than 6,100 traded in volume that dwarfed the strike's previous open interest of just 136 contracts, which shows that this is fresh buying.

These calls lock in the price where the stock can be purchased, so they can generate some nice leverage in a rally. The contracts also limit the amount of money that can be lost if shares fail to move or decline.

Braskem rose 7.3 percent to $16.16 yesterday after a report today that the government would more than double the company's tax credit. In February, the company reported its best quarterly profit in 1-1/2 years, and the dividend yield is close to 4 percent. It operates in three segments: basic petrochemicals, polyolefins, and vinyls.

The stock normally sees less than 100 contracts trade in a typical session, but yesterday's volume was more than 70 times that amount. Not a single put was detected, so the tone was definitely bullish.

—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 BAK.