Is PAH the Right Mix to Compound Gains?

Platform Specialty Products PAH – NYSE

Tuesday, March 14, 2017

Chemical stocks have been hot in 2017, and up near the top of the list is Platform Specialty Products PAH – NYSE. Even after a recent pullback, PAH is still up 32.6% year-to-date.

Through summer, sharp paper says it will keep burning higher. During today’s session, someone bought 4,500 PAH August 15 calls for $0.60 apiece.

PAH

While this trade cost $270,000, what’s more notable is the relative size. PAH trades just 1,584 call options per day on average.

With a break-even price at expiration of $15.60, PAH needs to increase 20% for this trade to pay off. This is a volatile stock prone to outsized moves, and the long-term chart shows the upward potential. Above $15.40, this trader is primed to make $450,000 for every dollar PAH rises.

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