CSX Shares Soar 1.67% on Restructuring, Bullish Options Activity

CSX Corporation (CSX) shares surged 1.67% today, marking the second consecutive day of gains, with a total increase of 2.31% over the past two days. The stock price reached its highest level since December 2024, with an intraday gain of 3.13%.

The strategy of buying CSX shares after they reached a recent high and holding for one week yielded a 3.5% increase in the past week alone, with an overall return of 22.3% over the past five years. However, this strategy may not be suitable for long-term investors seeking higher compound annual returns, as the total share price return over the same period was only 37%. Additionally, the stock's volatility, with a 12% decline in the last year, highlights the risks of such a strategy in the short term.

CSX has recently announced a significant restructuring effort, which includes the layoff of 125 management positions. This move is aimed at realigning the company's operations and reducing costs, which could impact the stock price as investors assess the potential benefits and risks of these changes.

Additionally, there has been a notable increase in bullish options activity related to CSX stock. The volume of call options has exceeded expectations, indicating a positive investor sentiment towards the company. This surge in bullish activity suggests that investors are optimistic about CSX's future prospects, which could contribute to the recent upward trend in the stock price.