Energy has been lagging, but traders are looking for upside in
optionMONSTER's Heat Seeker monitoring program has detected bullish
activity in several industry leaders so far today.
hit first as buyers snapped up 10,500 February 72.50 calls, mostly
for $0.14 and $0.15. Exxon Mobil's February 105s followed minutes
later for $0.16 and the February 50s on BP were purchased for
Volume exceeded open interest in all three, so new money was
clearly put to work in these
. It's especially noteworthy that they selected cheap contracts
expiring next month because that means they think a rally could
ensue in the near term. This way they won't miss it, but they're
also risking a tiny fraction of the capital they would need to buy
shares. ((See our
COP is down 0.22 percent to $67.93 in afternoon trading. XOM is off
0.08 percent to $98.70, and BP has slipped 0.34 percent to $47.94.
The broader energy sector has struggled against the S&P 500
over the last year amid high inventories and as Chinese growth
But yesterday the World Bank raised its forecast for the global
economy and stockpiles fell sharply. That drove up crude oil, and
today's option activity reflects a belief energy stocks will return
The Heat Seeker also picked up unusual bullish activity in smaller
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