How one Tesoro bull is extending bet


The bulls are looking for more treasure in Tesoro.

optionMONSTER's Heat Seeker monitoring system detected the purchase of 2,900 August 25 calls for $3.15 and the sale of an equal number of May 23 calls for $3.20. Volume was below open interest in May but not in August, so it appears that an existing long position was rolled from one strike to the other.

The move gives the investor an additional three months of long exposure to the Texas-based oil refiner, although at a higher break-even price. This suggests that the trader expects it will move at least $2 in the additional period of time. He or she also collected a credit of $0.05

TSO is up 0.72 percent to $23.75 in morning trading. It roughly doubled in late 2010 and early 2011 but has been fluctuating in a range since then.

Overall option volume is already twice Tesoro's daily average, with calls outnumbering puts by more than 100 to 1, according to the Heat Seeker.

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: TSO

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