Thursday, December 2, 2010

Lyondellbasell (LYB) - Call Order Flow Explodes

LYB closed yesterday at $29.88, up 2.3%. The LIVEVOL™ Pro Summary is below.

Here's a quick note on a stock that would normally never make it on my radar, but the high one-sided option volume relative to the average makes it worth a quick write.

LYB together with its subsidiaries, primarily manufactures and sells chemicals and polymers worldwide.

The company traded over 25,000 contracts on total daily average option volume of just 1,303. The action was in the Dec 30 calls, which traded more than 21,000x, purchases as I see it. The Stats Tab and Day's biggest trades snapshots are included (below).

The Options Tab (below) illustrates that the calls are mostly opening (compare OI to trade size).  The OI as of this morning is now over 24,000, so that existing interest was also long.

The Skew Tab snap (below) illustrates the vols by strike by month.

What's odd is that the skew doesn't really show a change in shape, at least as of the close.  The stock has gone from ~ $15 in July, to now nearly $30.

This is trade analysis, not a recommendation.

Follow Live Trades and Order Flow on Twitter: @Livevol_Pro

Legal Stuff:


  1. Holder of over 2ml shares had big profit and wanted to book.Holder also wanted to be long.Buying calls to upside in front of the sell today seems very positive and buying the dec $30 calls is even more bullish.They are expecting a fast rebound and continued upside in my opinion.Company is in 100% better condition than when Reliance Ind. LTD tried to buy for $14.5bl last year.

  2. Looking at volume today when seller started and ended who more than likely made the large purchase of Dec.$30calls yesterday actually purchased double the calls as stock selling today.Booking profit for 2010 and doubling his or her position going forward as it would only make since to exercise that option which would have a total cost of $30.85 a share.That is as about as bullish as one can be.