Cameron International (CAM) Call Options Double In Week
Another unusual call option buy, another unusually large profit for one trader with the inside scoop. This time the profitable trade was in Cameron International (CAM) calls.
We alerted you last Friday, July 18th, about a very large call buy in Cameron International (CAM). One “lucky” trader bought a staggering 11,186 January $75 calls that morning. The buyer paid about $2.05 per call. That transaction value was just under $2,300,000!
At the time we guessed it was an earnings play, and it certainly did help the options when they reported a profit increase of 58%. However, it got even more help today with ratings upgrades and price target increases by Global Hunter and by Cowen and Company.
It’s certainly possible one of the analyst firms were the buyers of that huge wack of calls. Some might call that game rigged, we call it an opportunity to copy the trade and profit.
Cameron International (CAM) hit a day high of $74.53 and is currently trading at $74.21 up $1.76 today.
We don’t like to get greedy, so we got out with a quick double, at $4.20 earlier today. Not bad for a weeks “work”.
Based on the volume for the contract, it’s quite possible the original trader is still holding onto those calls. If they had sold at $4.20, they would have a total profit of $2.3 million! Of course, they are the smart money, so they probably are holding for a triple, or more.
Happy trading, and have a good weekend.
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