Buffett News Entices Axalta Coating Systems (AXTA) Traders

Axalta Coating Systems Ltd (AXTA) is surging on an investment from Warren Buffett

Digital Content Group
Apr 7, 2015 at 10:34 AM
facebook twitter linkedin


Axalta Coating Systems Ltd (NYSE:AXTA) is fresh off an all-time high of $30.29, after Warren Buffett's Berkshire Hathaway Inc. (NYSE:BRK.A) took a $560 million stake in the automotive firm. Options traders are also reacting, with calls crossing at 36 times the expected intraday rate.

Diving right in, AXTA's most active option is the April 30 call, where some buy-to-open activity may be transpiring. Buyers of the at-the-money contract expect the shares to extend their lead north of $30 by the close next Friday, April 17, when front-month options expire.

Today's pronounced preference for calls over puts marks a change of pace for AXTA. During the last two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock has amassed a put/call volume ratio of 13.33 -- with more than 13 puts bought to open for every call.

At last check, Axalta Coating Systems Ltd (NYSE:AXTA) was up 6.3% at $30.10. Year-to-date, the shares have advanced 15.7%.

Daily Chart of AXTA since November 2014


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earnings guide for Q3 before it's too late!


  
 
Special Offers from Schaeffer's Trading Partners