Methanex Corporation (MEOH) is a commodity chemicals company supplying methanol to markets around the world. The company’s stock is currently trading around $57.70 in a 52 week range of $40.14-$73.43. The company’s stock has been underperforming the market some this year with shares of MEOH falling by over 2.5% year to date. Options traders seem to expect this will reveres as orders hitting the tape during today’s trading session have been decidedly bullish. Earlier this morning a trader bought 3,100 MEOH June 60 calls for $1.10. This is a very bullish order and this block represents volume in MOEH nearly 5 times its average daily option volume. Although shares of MEOH are trading below the Ichimoku Cloud order flow this strong could signal for a long opportunity in MEOH.
My trade: I bought the MEOH Jun 60 calls for $1.00
Risk: $100 per 1 lot
Reward: Unlimited
Breakeven: $61.00