Call buyers filling up with PetroChina

By David Russell,

Shutterstock photo

PetroChina is not a common target for option traders, but bulls were piling into the name at the end of last week.

About 2,200 December 130 calls were purchased on the Beijing-based energy company on Friday, mostly for $0.90 and $0.95. Volume was almost twice open interest in the strike, according optionMONSTER's Heat Seeker.

These long calls , which give traders the right to buy PTR for $130, will expire worthless at the end of this week if the stock remains below that level. But they can also appreciate by double, triple or more if PTR rallies quickly. (See our Education section)

The stock rose 0.41 percent on Friday to close at $124.58 and has been slowly working its way higher since the summer. Energy has been one of the stronger sectors in the last two weeks as investors bet that a resolution to the European debt crisis will boost commodity prices.

Overall option volume in PTR was 7 times greater than average on Friday, with calls outnumbering puts by a bullish ratio of 10 to 1.

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

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

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

This article appears in: Investing Options
Referenced Stocks: PTR

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