Options Guide
Traders See Upside to Sigma-Aldrich
OptionMonster
05/20/09 - 08:21 AM EDT
By Pete Najarian, co-founder of OptionMonster
Sigma-Aldrich (SIAL Quote) has risen more than 45% since its March lows and some options traders apparently believe that the biochemical company has even more upside potential.
The average daily total for all Sigma-Aldrich options is 210 contracts, but calls alone totaled 4,474 Tuesday vs. just 58 puts, according to OptionMonster's proprietary monitoring program.
Trading was focused on the June 50 options, in which more than 3,300 calls went for 30 cents to 55 cents, dwarfing open interest of just 20 contracts. Normally just one call trades at that strike on average each day.
The stock closed Tuesday off half a point to $45.83 but crept up by a dime in after-hours trading. The shares were trading at their 52-week low of $31.45 on March 9.
Sigma-Aldrich reported slightly lower first-quarter earnings last month as a stronger dollar cut into overseas sales. But lower costs helped offset the sales decline, and the specialty chemical industry got a boost when Goldman Sachs upgraded the sector to "attractive."