Energy has been a constant theme, and now the bulls are noticing
pipeline operator Transcanada.
optionMONSTER's Heat Seeker monitoring system detected the purchase
of 5,000 November 32 calls for $0.94 to $1 yesterday against
previous open interest of just 7 contracts. Almost all the volume
occurred in the last five minutes of trading, suggesting that it
was the work of at least one large institutional investor.
lock in the price where shares can be bought in the Calgary-based
company. Investors use these options to prevent the stock from
running away from them and to leverage otherwise small moves in the
underlying price. (See our
TRP fell 0.5 percent to $44 yesterday after rebounding late in the
session on heavy volume. It's been weak all year but is now
attempting to hold the same $44 level where it hit resistance
several times in late 2011 and early 2012.
The stock resembles
, a refining and transportation name that's been climbing after
appearing on the Heat Seeker last week. The NS December 40 calls,
first cited for $0.55, closed yesterday worth $1.90. There was also
bullish activity in
Canadian Natural Resources
late in the afternoon.
Total option volume in TRP was 37 times greater than average
yesterday. Calls outnumbered puts by more than 1,000 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.
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