June 3, 2025
Buy the CSX (CSX) January 32.5 Calls (exp. 1/16/2026) for $3 or less.
The call buying bonanza that I’ve highlighted recently in CSX (CSX) continued yesterday, even as the stock was hit with a downgrade that morning. Here are some of those trades made in the last two weeks:
Yesterday – Buyer of 10,000 CSX (CSX) September 35 Calls for $0.70 – Stock at 31
Friday - Buyer of 60,000 CSX (CSX) September 35 Calls for $0.75 – Stock at 31.5
Thursday - Buyer of 2,000 CSX (CSX) January 35 Calls for $1.40 – Stock at 31.5
5/23 - Buyer of 30,000 CSX (CSX) January 35 Calls for $1.20 – Stock at 30.5
5/22 - Buyer of 45,000 CSX (CSX) January 35 Calls for $0.95 – Stock at 30.5
While the call buys are a bit out-of-the-money for my liking, what I do like is the constant buying day after day, and the size of these buys. In addition, the price of options in CSX are so inexpensive that this feels like a shot worth taking.
To execute this trade you need to:
Buy to Open the CSX January 32.5 Calls
The most you can lose on this trade is the premium paid, or $300 per call purchased.
The risks I see in this trade are largely market and sector related.
And while the market has been on a nice run as of late, and may be due to cool off, it is also possible that this rally is just getting going. And given this buyer of well over 150,000 calls as of late in CSX, and the very reasonable price for these calls expiring in seven months, I really like the risk/reward in this buy.
| Position (Original) | CSX January 32.5 Calls |
| Position Strategy | Buy Call |
| Opened Date | June 4, 2025 |
| Expiration | January 16, 2026 |
| Net Price | 2.79 |
| Strike | 32.5 |
