This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bulls Climb Aboard C.H. Robinson

By David Russell of OptionMonster
NEW YORK -- Shares of C.H. Robinson Worldwide (CHRW) have gone nowhere forever, but Wednesday the bulls looked for the shipping and logistics firm to rally.
OptionMonster's tracking systems detected the purchase of more than 5,000 February 57.50 calls for $2.20 to $3.05. The volume was well above previous open interest of 3,101 contracts, indicating that new positions were initiated.
These calls lock in the price where a stock can be bought, letting investors cheaply control a move higher and enjoy significant leverage if one occurs. For instance, a 5% stock gain in the next five weeks will double the value of the options.
Robinson's shares closed the session up 2.77% at $59.34. The stock has been trapped between $55 and $62 since last February, when it cratered on a poor earnings report. The next quarterly results will be released after the closing bell on Feb. 4.
Wednesday's bullish option trades came after the World Bank just raised its global growth forecast for this year and next. That's potentially bullish for a company like CHRW, which helps companies move freight by air and sea.
Total option volume in the name was five times greater than average Wednesday. Overall calls outnumbered puts by a bullish 20-to-1 ratio.
Russell has no positions in CHRW.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $134.68 3.40%
FB $81.81 0.34%
GOOG $555.39 -1.70%
TSLA $231.69 6.10%
YHOO $44.37 -0.34%


DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports