Call spread bets on bounce in Murphy Oil

By
A A A

Murphy Oil has been falling for more than a month, and now the bulls are stepping in.

optionMONSTER's Heat Seeker tracking system detected the purchase of 2,000 July 55 calls for $2.95 and the sale of an equal number of July 60 calls for $1.30. Volume was above open interest in both contracts.

The trade cost $1.65 and will earn a maximum profit 203 percent if the stock closes at or above $60 on expiration. It's known as a call spread because it leverages a move between two prices. (See our Education section)

MUR rose 2.95 percent to $53.45 yesterday. It began March around $64 but has been following the rest of the energy sector lower since then. The shares are now attempting to bounce at a higher level than the lows made in late 2011, which some chart watchers may consider a bullish pattern.

The company, which explores for oil globally and sells gasoline in the United States, is scheduled to report first-quarter results on May 3.

Overall option volume in MUR was almost twice its daily average yesterday, according to the Heat Seeker. Calls outnumbered puts by 7 to 1.



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: MUR

optionMONSTER

optionMONSTER

More from optionMONSTER:

Related Videos

ColonialMills_USETBASITE
ColonialMills_USETBASITE            

Stocks

Referenced

100%

Most Active by Volume

81,768,754
  • $74.11 ▼ 2.31%
77,395,717
  • $9.42 ▼ 5.80%
67,947,205
  • $17.02 ▲ 0.18%
53,864,169
  • $32.58 ▼ 3.95%
44,748,631
  • $11.32 ▲ 0.98%
42,926,278
  • $9.97 ▼ 9.03%
42,401,116
  • $41.80 ▼ 0.67%
39,870,972
  • $106.98 ▼ 0.34%
As of 10/30/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com