Murphy Oil has been pushing higher, and the bears are stepping
in before the company's earnings report tomorrow.
optionMONSTER's Depth Charge monitoring system detected the
purchase of about 2,500 February 60 puts today for $2.25 to $2.45.
Volume was more than 15 times open interest in the strike.
MUR is down 2.2 percent to $59.64 in morning trading. The oil and
natural-gas company warned yesterday afternoon that production at
its West African offshore unit will be weaker than expected,
resulting in a non-cash impairment charge. Full quarterly results
come out after the bell tomorrow.
Shares are up 19 percent in the last two months but have returned
to roughly the same level where they peaked in April 2010. They're
also close to support from June 2011 and their 200-day moving
average, which could be leading some chart watchers to expect
resistance around this area.
Overall option volume in MUR is triple the daily average, with puts
outnumbering calls by 16 to 1.
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