Bulls bet Cameron will keep running

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Cameron has been running for months, and the bulls were looking for more upside yesterday.

optionMONSTER's Heat Seeker system detected the purchase of more than 11,000 January 75 calls in the session, most of which priced for $2.05 and $2.10. Volume was more than 40 times the previous open interest in the strike, which indicates that new money was put to work.

These long calls lock in the price where investors can buy shares in the Houston-based provider of oilfield services. They provide cheap upside exposure and help manage risk, so they make a lot of sense with earnings due next Thursday before the opening bell. But if shares remain below $75 through mid-January, these contracts will expire worthless. (See our Education section)

CAM fell 0.73 percent to $69.09 yesterday but is up 16 percent this year. Total option volume in the name was 13 times greater than average in the session, with calls outnumbering puts by a bullish 20-to-1 ratio.

Other energy names including Noble, Ensco, and Kinder Morgan Energy Partners also saw bullish activity yesterday.

(A version of this post appeared on InsideOptions Pro yesterday.)



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


This article appears in: Investing , Options

Referenced Stocks: CAM

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