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Bullish and bearish on C.H. Robinson


C.H. Robinson Worldwide (NASDAQ NASDAQ
 in full National Association of Securities Dealers Automated Quotations

U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on
: CHRW CHRW C.H. Robinson Worldwide (stock symbol) , Stock Forum) saw interesting put volume Friday Friday: see Sabbath; week.

Friday

young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe]

See : Servant
 but the activity was not all bullish Bullish

Word used to describe an investor's attitude. Bullish refers to an optimistic outlook, while bearish means a pessimistic outlook.


bullish 
 or all bearish Bearish

Words used to describe investor attitude. A bearish investor believes that a particular asset or the market as a whole will decline in value.


bearish 
 – it was a mixture of both.

Looking at Aug. 30 puts and Nov. 35 puts, it appeared that some puts were bought and some puts were sold by an investor rolling out a short-put and betting that the stock won’t sink below a certain level.

Friday, we saw 15,000 Aug. 30 put contracts trade versus open interest of 17,338. These puts traded for an average price of around 30 cents per contract. In addition, we saw the Nov. 35 put options trade around $1.40. Volume for these puts hit 5,000 versus current open interest of 173.

CHRW first-quarter earnings beat analysts' estimates as the company flatlined at 50 cents a share during the first quarter. Analysts estimate the company’s earnings per share to climb to 53 cents this quarter and 54 cents in the third quarter.

CHRW stock closed Friday at $52.55, a 58-cent drop. The company, which provides freight transportation services, came under severe pressure along with the rest of the transport industry in the first two months of the year, but has seen a bounce-back from market lows around March 9 as prospects for the economy improve. The company’s stock is up more than 40% since the beginning of March.

If it turns out that the Aug. 30 puts were bought to close and the Nov. 35 puts sold to open, then arguably ar·gu·a·ble  
adj.
1. Open to argument: an arguable question, still unresolved.

2. That can be argued plausibly; defensible in argument: three arguable points of law.
 this is an investor rolling out a bullish bet that the stock will not dip below the strike price of these puts anytime soon.
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Article Details
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Author:Jud Pyle
Publication:Stockhouse
Date:May 4, 2009
Words:272
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