McMoRan Exploration is attempting to bounce at a 52-week low,
and investor is getting long.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 5,000 February 14 calls for about $1.60. An equal
number of February 8 puts was sold at the same time for
approximately $1.07. There was barely any open interest in either
strike when the session began.
The trade cost about $0.53 and is similar to owning shares in the
New Orleans-based offshore driller. It will make money if MMR
pushes toward or above $14 and lose money toward $8. However,
unlike a simple long position in the stock, performance will track
the shares less closely as time passes.
And, if MMR stays between the strike prices, it will expire
worthless. See our Education Section for more.
MMR rose 1.06 percent to $11.41 in morning trading. It popped in
late June on bullish news about "Davy Jones" property, but then
fell along with the rest of the market earlier this month. It's now
back to levels where it traded last summer before ripping higher.
Overall options volume in the name is about twice the average
amount so far today.
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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