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By David Russell

Investors are snapping up calls in Sociedad Quimica y Minera de Chile (NYSE:SQM), betting that the Latin American fertilizer company will continue to run higher.

SQM Chart

Volume in the June 40 calls hit 2,497 against open interest of just 239 contracts late Friday afternoon, according to optionMONSTER's Heat Seeker tracking system. A single purchase of 2,200 calls for $0.55 accounted for most of the activity.

SQM ended the day up 1.56 percent to $36.36 and needs to climb another 11 percent for the options to generate a profit. The stock has rallied 54 percent since March 9, outpacing North American rivals such as Potash and Agrium.

The Chilean company doesn't appear to have any significant events scheduled until second-quarter results are published on Aug. 11. However, the stock recently bounced off an old high around $34, which some traders may consider confirmation of a bullish trend.

SQM's July 40 calls were also active, trading 2,280 times against open interest of 823 contracts. A single purchase of 1,800 contracts for $1.35 generated most of the volume and appeared less than a minute after the large transaction in the June strike.

(A version of this post appeared on InsideOptions late Friday. Chart courtesy of tradeMONSTER.)

Source: Investors Snapping Up Calls in Chemical & Mining Co. of Chile Inc.