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• Call sellers see limited upside in PHH
• Show of support for emerging markets

• PXP 0% Rate It

Plains Exploration & Production has been consolidating, and one investor is getting ready for the next move higher.

optionMONSTER's Heat Seeker tracking system detected the purchase of about 2,700 March 35 calls for $3.80. Volume was more than 190 times open interest in the strike.

PXP is down 0.37 percent to $37.51 in afternoon trading and has been hovering between $36 and $38 since the start of the year. The oil and gas company had traded as low as $20.25 back in October.

Those long calls are in the money and will provide leverage even if the stock moves a small amount. For example, they will appreciate roughly 60 percent if PXP climbs less than 10 percent to $41. (See our Education section)

The company is scheduled to appear at the Credit Suisse Energy Summit at 10:45 a.m. ET on Tuesday and will present fourth-quarter results before the bell on Feb. 23.

Overall option volume is almost twice the average amount in PXP so far today, according to the Heat Seeker.

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