Bulls Busy as Century Aluminum Company (CENX) Breaks Out

Century Aluminum Co (CENX) calls are flying off the shelves today

by Alex Eppstein

Published on May 1, 2015 at 2:10 PM
Updated on Jun 24, 2020 at 10:16 AM

Century Aluminum Co (NASDAQ:CENX) has jumped nearly 12% this afternoon to trade at $14.42, after the company reported better-than-expected first-quarter profits. Meanwhile, option bulls are anticipating extended gains for the shares.

Currently, CENX calls are being exchanged at 13 times the expected intraday rate. The May 15 call is most popular, and is seeing what looks like buy-to-open activity. In short, the buyers expect the equity will topple $15 by the close on Friday, May 15, when front-month options expire.

Looking back, CENX -- which is still down more than 40% year-to-date -- last traded above $15 in early March. Today, the shares rallied as high as $14.98, falling just shy of the strike.

With respect to sentiment, today's call buyers are breaking the longer-term trend. Century Aluminum Co's (NASDAQ:CENX) 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 2.69 ranks in the top quartile of its annual range.

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