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5,000 Earnings Expiration Calls Trade in Eastman Chemical Company (Symbol: EMN)

5,000 Earnings Expiration Calls Trade in Eastman Chemical Company (Symbol: EMN)

Posted April 2, 2025 at 10:15 am

Jeff Praissman
Interactive Brokers

This morning 5,000 Eastman Chemical Company (Symbol: EMN) May 16 ’25 95 calls traded for $1.10. This was an opening trade with the open interest in the calls less than 50 contracts this morning. At the time of the trade EMN was trading for $87.62.  The NBBO at the time of the trade was $1.10 / $2.10 so the investor most likely sold the calls.

EMN is expected to release earnings between April 23rd and April 28th so the May 16 expiration will be in play for earnings. EMN has outperformed earnings estimates the past eight quarters.

Past performance is not indicative of future results

The calls are a 22 delta which makes the trade the equivalent of 110,000 shares of stock. The investor may be selling covered calls against an established stock position to take advantage of the increased volatility that usually comes with an earnings expiration, or they may be speculating that EMN will not trade higher than 95 by expiration.

EMN is currently trading at $$87.71. EMN has a 52-week high of $88.11 and a 52-week low of $85.97.

Source: IBKR TWS. Past performance is not indicative of future results

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