A large trade is looking for a big rally in Dupont by next spring.

optionMONSTER's Heat Seeker system shows that 5,555 April 60 calls were bought in one print for $0.68. This is clearly a new purchase, as open interest in the strike was just 45 contracts before the trade occurred.

These long calls lock in the price where the stock can be purchased through mid-April no matter how far it might climb. They could be sold earlier at a profit if premiums rise with a rally before then, providing potentially significant leverage, but the contracts will expire worthless if shares remain below $60. (See our Education section)

DD fell 1.55 percent to $48.84 yesterday and is down about 25 percent in the last three months. The chemical company has been trending steadily lower since breaking through support at the $66 level in mid-July.

Overall option volume in the name was 50 percent higher than its daily average for the last month. Total calls outpaced puts by more than 2 to 1.


More From optionMONSTER

• Will Baxter have a happy new year?
  
• Endo seen holding recent support
  
• Barnes & Noble draws put buying