One “smart” trader jumped into E I Du Pont De Nemours And Co (DD) in a big way first thing this morning, and it’s already paying off big.
The trader’s crystal ball was working well this morning when they bought 6760 September $67.50 calls in DD at the open. The trader paid just 55 cents for the calls. Since then almost 16000 of the Sept $67.50 calls have traded. Open interest was just over 2,000 at the time.
Half an hour later, those calls are now trading at 90 cents, though they look to be topped out for the moment. It could be the trader already sold his position for just under a double?
E I Du Pont De Nemours And Co (DD) spiked up after the call buy, as high as $66.95, and is currently up $1.26 to $66.58 on average volume for this stock.
So why the big call buy? It’s not clear, but it doesn’t have anything to do with earnings which came out last week. Of course it could be an impending (and leaked) analyst upgrade coming soon to a newswire near you. E I Du Pont De Nemours And Co has a consensus rating of HOLD currently, with a consensus price target of $69.07.
So our money is on an analyst upgrade / price target increase to be announced very soon. Of course, as usual, it’s likely the analyst, or friends and family of the analyst, who bought the large chunk of calls this morning. As usual, it’s who you know, not what you know.
It’s clearly too late to jump in on this bandwagon now, but if it were to pull back we’d definitely be interested in copycat trading this one.