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

Stocks

Referenced

100%

Most Active by Volume

183,639,073
  • $42.32 ▲ 3.85%
82,623,623
  • $15.99 ▼ 22.79%
39,547,942
  • $119 ▲ 1.19%
32,107,751
  • $77.62 ▲ 2.63%
29,684,848
  • $10.60 ▲ 2.02%
27,615,309
  • $24.03 ▲ 0.38%
26,917,669
  • $31.10 ▲ 2.07%
26,464,306
  • $47.75 ▲ 0.59%
As of 11/26/2014, 04:15 PM

Find a Credit Card

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