Traders have been consistently buying upside positions in C.H. Robinson Worldwide recently, and those upside positions are already paying off exponentially.
Last Thursday, Investitute’s tracking systems identified the purchase of 5,800 October $77.50 for $0.29 to $0.40 with shares at $75.24. These was clearly fresh buying, as volume was well above the strike’s open interest of 1,122 contracts.
This morning those contracts traded up to $1.85, more than 6 times their original purchase price. The stock rose 4.8 percent in the same time frame, underscoring how quickly options can far outperform their underlying shares.
CHRW was up 2.17 percent today to close at $77.09. This morning Bank of America / Merrill Lynch upgraded the trucking-logistics company by two notches, to “buy” from “underperform,” and raised its price target to $86 from $70.