Key Energy Services is fighting its way higher, and the bulls
are looking for a breakout.
optionMONSTER's Heat Seeker tracking system detected a surge of
call buying in the company, which has traded only an average 57
contracts a day over the last month.
Volume is 100 times that amount today as investors look for the
stock to escape from a range that has held it in check since
January. The December 10 calls are the most active strike, and have
traded about 3,100 contracts against open interest of 1,983.
Premiums ranged from $1.20 to $1.35. The March 12.50s traded about
1,736 times for $0.50 to $0.65 against open interest of just 69
KEG is up 3.2 percent to $10.95 in afternoon trading and has
climbed 26 percent in the last three months. The provider of
oil-field services has spent about the last week consolidating
above its 200-day moving average (purple line on chart) and seems
to have broken a downtrend that has been in place since about
Traders may consider that chart pattern as evidence of an emerging
uptrend and look for the stock to climb--especially considering the
broad strength in the energy sector over the last three months.
Calls in KEG outnumber puts by 22 to 1 so far today, according to
the Heat Seeker.
(Chart courtesy of tradeMONSTER)
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