Bulls target another move from Plains

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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.




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: PXP

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