Devon Energy has been trending steadily higher, and the bulls
are piling in ahead of quarterly results in two weeks.
optionMONSTER's Heat Seeker tracking program detected the purchase
of more than 9,000 September 80 calls yesterday, most of which
priced for $1.57. Volume was more than 400 times the previous open
interest in the strike, which indicates new money was put to work
on the long side.
lock in the price where investors can buy stock in the oil and gas
company, letting them cheaply position for a rally. The low cost
limits their risk, but the contracts can quickly lose value if
shares drop. (See our
DVN rose 1.34 percent to $78.15 yesterday and is up 27 percent this
year. The stock has pulled back more recently but is now trying to
bounce at its 50-day moving average, which could make some chart
watchers think that its bullish uptrend remains intact.
The company is scheduled to report earnings before the opening bell
on Aug. 6.
Yesterday's total option volume in the name was more than triple
its daily average for the last month. Overall calls outnumbered
puts by a bullish 10-to-1 ratio.
(A version of this post appeared on
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