Will EnerNoc power even higher?

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EnerNoc bounced after a strong earnings report on Nov. 7, and the bulls came back last week.

optionMONSTER's Heat Seeker system detected the purchase of almost 3,500 December 20 calls for $0.30 to $0.45 on Friday. Volume was 9 times the previous open interest at the strike, indicating that new money was put to work.

These long calls lock in the price where shares can be purchased, letting investors cheaply position for a rally. They can also generate significant leverage because a gain of about 12 percent in the stock will more than double the value of those December 20 contracts. (See our Education section)

ENOC rose 8.34 percent to $18.70 on Friday. The provider of energy-management applications for the smart grid is expected to grow revenue 38 percent this year and 17 percent in 2014 as utilities look to increase efficiency. RW Baird raised its price target on the stock to $24 from $21 on Nov. 8.

Overall option volume was 20 times greater than average in the name, with calls accounting for a bullish 92 percent of the total.

(A version of this post appeared on InsideOptions Pro on Friday.)



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.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


This article appears in: Investing , Options

Referenced Stocks: ENOC

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