Cobalt International Energy has more than doubled since
December, and the bulls apparently think that it may keep running.
optionMONSTER's Heat Seeker tracking system detected the purchase
of about 1,000 March 25 calls for $1.75 and the sale of an equal
number of February 22.50 calls for $1.60. Volume was below open
interest in February but not March, which indicates that an
existing long position rolled from one contract to the other.
That provides the investor with an additional month of upside
exposure to the offshore oil driller. In return, they paid $0.15.
CIE rose 5.3 percent to $23.46 yesterday, continuing a monster run
from the $10 area that began in mid-December. Most of the gains
followed an announcement on Dec. 20 confirming the presence of
hydrocarbons at a key well off the coast of West Africa.
Overall option volume in CIE was triple its average amount
yesterday, with calls outnumbering puts by 4.5 to 1.
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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