Patterson-UTI draws bullish trade

By
A A A

One investor is placing a cheap bet on Patterson-UTI Energy before the company announces quarterly results tomorrow morning.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 2,000 February 24 calls for $0.05. There was no open interest at the strike before the trade appeared, indicating that this is a new bullish position in the contract-drilling company.

PTEN is up 0.73 percent to $20.73 in afternoon trading and has been trending higher since last June. The call buyer has the right to buy shares for $24 through the end of next week, no matter how high they may climb.

It will take a 15 percent move for those contracts to be in the money , but then the investor will double his or her investment for every $0.05 that the stock trades above $24.05. If PTEN doesn't move, their $0.05 will be lost. (See our Education section for more on the potential leverage provided by options.)  

The Heat Seeker shows total volume approaching 2,900 contracts--roughly triple the average amount. Calls outnumber puts by a bullish 7-to-1 ratio.




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: PTEN

optionMONSTER

optionMONSTER

More from optionMONSTER:

Related Videos

Stocks

Referenced

Most Active by Volume

95,530,319
  • $15.15 ▼ 1.81%
88,891,852
  • $6.01 ▼ 6.09%
80,331,117
  • $117.16 ▼ 1.46%
75,474,903
  • $40.40 ▼ 3.83%
58,037,145
  • $3.54 ▲ 18.39%
53,961,231
  • $32.92 ▼ 0.12%
51,698,455
  • $23.89 ▼ 0.79%
41,667,475
  • $3.55 ▼ 1.11%
As of 1/30/2015, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com