NuStar GP Holdings, LLC (NSH) is a company engaged in the storage, transportation and marketing of petroleum products in the U.S. The company’s stock is currently trading around $23.25 in a 52 week range of $19.34-$34.17. The stock has shown weakness this year, selling off over 16% year to date and over 24% in the past 12 months. Despite the weakness the stock has shown this year traders have stepped in today to take large bullish bets on NSH. Earlier in today’s trading session a trader bought 3,800 NSH Nov 25 Calls for $0.40. This order represents volume over 5 times the average daily option volume in NSH. This trade indicates that this trader believes there is upside potential in NSH through November. This also gives this trade exposure to NSH’s next earnings report on November 12th. NSH is historically a strong performer on earnings having rallied 5 of the past 7 quarters. This trade will also add to the already very bullish current open interest put/call ratio of 0.18. We believe that all of these factors are lining up well for a long swing trade in NSH stock.
Trade: Buying NSH stock at $23.25 with a stop at $21.65
Risk: $1.60 per share
Target #1: $24.05
Target #2: $24.85
Target #3: $26.45
