Air Products and Chemicals, Inc (APD) is a commodity chemicals company providing product and services to businesses in many different industries. The company’s stock is currently trading around $119.95 in a 52 week range of $84.04-$123.60. The stock has been doing well this year with shares rallying over 7% year to date. Options action in today’s trading session suggests that traders believe this trend will continue through the rest of the year. Earlier in the session a trader bought 9,000 APD Jan 2015 135 calls for $3.90. This is a very bullish trade and represents some very unusual volume in APD. Over 5.5 times the average daily option volume has already traded in APD. This is also an outlay of nearly $3.7 million for this trader. With shares trading well above the cloud we believe that APD should head higher through January expiration.
Trade: Buying the APD Jan 2015 135 Calls for $4.10
Risk: $410 per 1 lot
Reward: Unlimited
Breakeven: $139.10