Fracking stocks have been emerging as a strong group in the last
week, and today the option activity is focusing on Heckmann.
optionMONSTER's tracking programs detected the sale of 5,000
September 3 puts in the company, which provides water to energy
companies extracting oil and gas from deep within the earth. The
contracts priced for $0.20.
is now obligated to buy shares of HEK for $3 if they close below
that level on expiration. If it doesn't, he or she will keep the
$0.20 and the options will expire worthless. Such trades often mark
bottoms in share prices and reveal a strong willingness to get
long. (See our
section for more.)
HEK is up 3.63 percent to $4.28 percent in afternoon trading. While
the stock is still down about half from its levels in 2008, it has
been bottoming out in the last six months and was propelled higher
by strong earnings announced on Monday afternoon.
"We believe the challenges of 2012 are subsiding--capital budgets
are being reset and we see increased momentum from high oil
prices," CEO Mark Johnsrud said in the quarterly report. He also
said the company now stands to benefit from past investments as
Price action has been positive in other
followed by our researchLAB market scanner, which categorizes
stocks thematically. Others including CJ Energy Services and Flotek
Industries have also been gaining momentum.
The group came into today's session up more than 5 percent in the
last week, while the broader energy sector was up less than 1
percent in the same period.
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