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• Bear goes after RIMM at eight-year low
• How one call seller is ringing up Avon

• SU 0% Rate It

One big investor expects modest gains from Suncor Energy, which reports earnings tomorrow morning.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 5,000 May 33 calls for $0.68 and the sale of 10,000 May 35 calls for $0.17. Volume was above open interest at both strikes, indicating that a new position was opened.

The trade cost $0.34 and will earn a maximum profit of 488 percent if the Canadian oil stock closes at $35 on expiration. The gains will erode above that level and turn to losses over $37.  

SU is up 1.8 percent to $32.85 in early afternoon trading. It's been fluctuating in a range and is now trying to work its way higher since last summer's crash.

Today's option trade is known as a ratio spread because twice as many calls were sold at the higher strike than were purchased at the lower strike. That increases leverage by reducing cost, but also creates the danger of being naked short calls if it moves too far in the intended direction. See our Education Section.

Overall option volume is quadruple the daily average so far today, with calls outnumbering puts by 6 to 1.

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