Murphy Oil started to rally last week, and the bulls are looking
optionMONSTER's Heat Seeker tracking system detected the purchase
of about 14,000 October 80 calls, first for $0.70 but then for as
much as $1.45 shortly before the closing bell. There was no open
interest in the strike when the session began, reflecting a quick
surge of interest in the Arkansas-based oil driller.
MUR traded over $75 in April, then pulled back to support below $65
last month. It made a higher low in early July and ripped higher on
Wednesday after a bullish note in Barron's. The stock then paused
at its 200-day moving average before Friday's bulls drove it
through that key level. It ended the session up 2.23 percent to
Earnings are scheduled for after the bell on Wednesday. The last
report on May 4 showed an 81 percent profit gain thanks to higher
energy prices, but production fell because of lower output at its
Kikeh Field off the coast of Malaysia.
Overall option volume in MUR was 13 times greater than average,
with calls outnumbering puts by more than 7 to 1.
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