$CF call prices grow in fertile ground

Upside option positions are turning big profits in CF Industries Holdings, Inc. (CF).

On May 6, Market Rebellion’s Unusual Activity scanners identified a significant order in CF Industries Holdings, Inc. (CF). The activity involved the purchase of 4,200 August $80 call options at prices ranging from $6.67 to $7.50 per contract, with CF shares trading between $81.82 and $82.48, exceeding the strike’s previous open interest of 521 contracts.

The timing was particularly notable, with CF’s earnings announcement scheduled for May 8, 2025, before market open – just two days after the option activity.

Those August $80 calls have traded as high as $15.34 today with the stock at $93.64, delivering returns between 104.53% and 130.13% depending on the initial entry price of $6.67 to $7.50. Meanwhile, CF shares have gained approximately 14.20% from their initial trading range around $82, demonstrating how options can deliver significantly amplified returns compared to simply owning the underlying stock.

This performance illustrates the power of options leverage when the directional thesis proves correct, though it’s important to note that this same leverage can work against traders when market moves go in the opposite direction.

CF was last down 2.08% in afternoon trade at $93.26.