Talisman Energy has been consolidating for years, and now the
bulls are showing up.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 6,300 January 2015 13 calls for $0.80 and the sale of
an equal number of January 2015 10 puts for $0.80. Volume was about
triple the previous open interest at each strike, indicating that
new positions were initiated.
gives the investor the right to get long, while
generates income but creates an obligation to buy a stock if it
falls. Combining the two strategies is highly bullish and similar
to holding common equity. The main difference is that it's much
Today's trade had no net cost and will perform similarly to holding
403,200 shares. That correlation will increase if TLM makes a sharp
move higher or lower. It will slowly lose value if the stock
remains between $10 and $13. (See our
section for more on how
time affects option prices
TLM is down 2.4 percent to $11.40 in afternoon trading and has
mostly been trapped between $11 and $13 since October 2012.
Earnings have missed expectations in recent quarters, but the oil
and natural-gas company is trying to improve results by managing
costs and increasing shale production in the United States.
Total option volume is 6 times greater than average so far today,
according to the Depth Charge.
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