One investor is getting greedy in Patterson-UTI Energy.
, our Heat Seeker monitoring system detected heavy buying in the
February 24 calls for $0.05. The contract-drilling company reported
strong quarterly results the next day, sending the shares higher by
about 14 percent.
The February calls tripled in the process, but instead of taking
profits, the investor is doubling down. He or she sold them
yesterday for $0.15 and purchased another 3,000 March 25 calls for
$0.30. That's an incremental debit of $0.15, raising the total cost
to $0.20 per contract.
In return, the trader gets an additional month of
. The investor stands to keep profiting if the stock continues to
climb but will see the premiums on those calls dwindle if it
doesn't. The trade comes against a backdrop of strong performance
in the energy sector as the global economy improves and domestic
drilling activity strengthens.
PTEN rose 0.68 percent to $23.74 yesterday and is up 27 percent so
far this year. Total option volume was triple its daily average in
the session, according to the Heat Seeker. Calls outnumbered puts
by more than 100 to 1.