Bullish Bets Seen In Dow Chemical (DOW) and LyondellBasell (LYB)

Option strategists at Susquehanna noted bullish option flow in chemical names The Dow Chemical Company (NYSE: DOW) and LyondellBasell Industries NV (NYSE: LYB).

Specifically, in Dow Chemical there are buyers of ~7,000 May 39 (.45d) calls for up to ~$0.90. Earnings are on 4/28. In LyondellBassell there are opening buyers of ~2,500 May 44 (.30d) calls for $0.70. LYB is currently estimated to report earnings on 5/18.

"The investors are likely betting that strong ethylene margins for the quarter will exceed expectations. In the near term, DD reports earnings tomorrow and the company has some exposure to ethylene," Susquehanna said. "LYB is also exposed to refining so we'd highlight upcoming earnings from the likes of SUN (5/5) and VLO (4/26)."

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