Cemex Option Trades Jump Amid Bets on More Volatility
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Trading of U.S. options on Mexico’s Cemex SAB jumped to five times the four-week average as investors bet that shares of the largest cement maker in the Americas will be more volatile in the next two months.
More than 31,000 Cemex options changed hands, with half of that trading concentrated in October $9 calls and October $6 puts as traders bought those contracts in a “strangle” strategy that profits as stock swings increase. The American depositary receipts rebounded from the lowest intraday level in a year to gain 3.3 percent to $7.90 as of 4 p.m. on the New York Stock Exchange.