It’s been a slow day in the unusual option trade department so far this morning. The only buy of interest came in Airgas, Inc (ARG) call options.
One trader has the idea that Airgas, Inc (ARG) shares will be floating higher between now and January 2015. They picked up 1148 January $115 calls in ARG this morning, almost all bought at the ask at $2.30. That makes for a big bet value of about $264,000.
Airgas, Inc (ARG) is currently trading at $108.17 up a buck on the day. ARG has a 52 week high of $113.16, and a low of $99.32 on the year. It’s trading volume is actually very low compared to average daily volumes, only trading 74,000 shares so far today.
Airgas, Inc (ARG)has already reported earnings on July 24, so clearly this is not a risky earnings play. ARG is scheduled to present at Jefferies Global Industrials Conference on August 12. May be some news “anticipated” at this event?
We like the longer term expiration this trader is targeting and will look to jump in on a pull back in the price of the shares at some point today. You know, when the ADHD traders get distracted by the next shiny object.
Seventeen analysts currently follow Airgas, Inc (ARG). The average rating on REN is “overweight” and the average price target is $114.45. ARG shares are trading at a PE of 22 now, with a PE for next year forecast at 18.67. There certainly looks to be room for a nice analyst upgrade / price target increase in this company. The call buyer could know more about that than us. In fact, they could be the ones getting ready to announce said upgrade.
Either way, we are interested in Airgas, Inc (ARG) and will look to jump on the call buying bandwagon if the price pulls back a bit today.