The bulls have cleaned up in Questar, but they're not exiting
the trade yet.
Early this year
, optionMONSTER's Heat Seeker monitoring system detected buying in
the April 22 calls for $0.25. The shares began climbing within a
few days and those calls quickly appreciated in value--doubling,
tripling, and quadrupling as the stock pushed higher.
Volume is spiking again today, this time as traders roll the
winning position forward in time. They sold 8,550 April 22 calls
for an average premium of $1.075 and purchased and equal number of
April 23s for $0.55. That allowed them to recover $0.525, more than
twice their initial investment, while remaining exposed to further
upside in the natural-gas company.
STR is up 1.61 percent to $22.73 in afternoon trading. That's a
gain of less than 10 percent since the initial
, which shows the kind of leverage that can be achieved with
options. (See our
Several natural-gas companies have been active recently as well.
Williams has been the target of repeated upside positioning, while
also handed out gains of more than 50 percent over the space of two
Total option volume in STR is 14 times greater than average so far
today, with not a single put trading so far.
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.
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