Newfield Exploration has been coming to life, and traders are
apparently counting on the positive trend to continue.
optionMONSTER's scanning programs detected unusual activity in the
oil driller on Friday, with almost 21,000 contracts changing hands
versus average volume of some 3,700. Half the activity occurred in
just two strikes, the October 26 calls and the October 28 calls.
While some of the pricing was unclear, it appears that roughly
5,000 of the 26 calls were sold for $1.45 to $1.65 and 5,000 of the
28s were bought for $0.47 to $0.63. Volume was below open interest
at the lower strike, indicating that an existing
was closed and rolled up to the 28s.
that the 26s were bought for $0.83, so it seems that the investor
adjusted a winning trade higher. He or she collected about $1 in
the process, recovering more than the initial investment while
staying in the trade further potential gains. (See our
section for more on how to manage trades more effectively with
NFX rose 1.28 percent to $26.83 on Friday, bucking a decline of
more than half a percent in the S&P 500. The stock has lagged
the broader market for years but outperformed in the last month as
management shifts away from natural-gas and overseas operations.
It's now focusing on North American oil production and forecasts
rapid growth at its Cana field in the Anadarko Bain and the Uinta
field in Utah.
The stock has also delivered the
biggest price increase
of any company in the SPDR Energy Sector Fund (XLF) in the last
month, as seen in the partial listing below from our
Calls accounted for almost four-fifths of Friday's volume, which is
I own NFX shares.
(Graphic courtesy of researchLAB)
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