Long-term bet sees big rally in CF

A long-term trade is staying bullish on CF Industries through early 2015.

optionMONSTER systems detected the sale of 3,000 January 2015 220 calls for $34.40 in volume below previous open interest of 3,315. Seconds later 5,000 January 2015 320 calls were bought for the ask price of $5.60 against previous open interest of just 39 contracts, so that is clearly new activity.

The investor appears to be rolling a position to a higher strike as the 220 calls go in the money. The new long calls are looking for CF to soar above $320 by early 2015, but the contracts will expire worthless if shares remain below that level.

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