Goodrich calls look for more gains


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Goodrich Petroleum has come back from a selloff last month, and one big investor expects the rebound to continue.

optionMONSTER's Heat Seeker monitoring program detected the sale of 11,200 March 15 calls for $0.90 and the purchase of 11,200 April 17.50 calls for $0.95. Volume was below previous open interest in the March contracts, so it appears that an existing position was closed and rolled to the higher strike.

Making the adjustment cost $0.05, and the new long calls will provide the investor with an additional month of upside exposure to the Houston-based oil and natural-gas producer. (See our Education section for more on how options can be used to cheaply ride a rally.)

GDP rose 0.27 percent to $14.67 yesterday and is now back near the same level where it traded before a poor quarterly report drove shares lower on Feb. 20. The stock is still down about 50 percent from its October highs.

Total option volume in the name was triple its daily average in the session, with calls outnumbering puts by a bullish 7-to-1 ratio.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Options

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