Westlake Chemicals has been dropping, and the bears are piling in.
optionMONSTER's Depth Charge tracking program detected the sale of 1,700 April 75 puts for $9.60 against previous open interest. Minutes later, 2,100 contracts were purchased at the April 60 strike for $4 in a new opening trade.
The investor apparently came into yesterday's session owning the 75s and rolled that position to the lower strike. He or she collected $792,000 in the process and stands to profit from further downside in the vertically integrated maker of polymers, vinyls, and fabricated building products.
WLK fell 4.63 percent to close at $70 yesterday. It had rallied for most of 2012, roughly doubling between January and earlier this month, but then double-topped around $80 and has been dropping since.
Total option volume was 22 times greater than average in the name, according to the Depth Charge. Puts outnumbered calls by 31 to 1.
More From optionMONSTER