After bottoming in August, CF consolidated sideways and then jumped 41.6% in less than two months to close the year.
Now firmly above the 200-day moving average, a sharp trader is looking for continued strength.[Yesterday], this customer bought 5,000 CF May 40 calls.
Bottarelli Research Translation: At $1.25 per contract, this trader outlaid $625,000 in pure option premium. With a break-even price at expiration of $41.25, CF has to increase 29.4% for this trade to pay off. Less than two years ago, CF traded as high as $67.00. If CF can forge this colossal rally, our trader is primed to make $500,000 for every $1 shares rise above $41.25.
Source: Bottarelli Research