The energy drumbeat continues today with a big upside trade in
optionMONSTER's Heat Seeker tracking program detected the purchase
of 16,536 March 62.50 calls for $0.88 and the sale of an equal
number of March 57.50 calls for $3.43. Volume was below previous
open interest at the lower strike, which suggests that an existing
position was closed and rolled higher.
The investor collected $2.55 and keeps upside exposure to the
oilfield-service company through the new
at the higher strike. He or she probably recovered the entire
investment and locked in some profits by making the adjustment.
BHI is up 0.22 percent to $59.90 in afternoon trading and has risen
13 percent in the last month. Most of that rally came after results
beat expectations on Jan. 21 and management issued strong guidance.
There has also been repeatedly bullish call buying in the name.
Total option volume in the name is already triple its daily average
so far in the session, with overall calls outnumbering puts by more
than 11 to 1.
Energy has emerged as a major theme in recent weeks as investors
targeted names such as National Oilwell Varco, Stone Energy, and
Superior Energy Services. (See the most recent edition of Pete and
newsletter for their bullish trade in BHI.)
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.
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