Murphy bulls looking for more upside

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Murphy Oil started to rally last week, and the bulls are looking for more.

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 $69.71.

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.

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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