Pipelines have been active for a long time, and the bulls came
back to Spectra Energy on Friday.
optionMONSTER's Heat Seeker monitoring system detected the purchase
of some 7,700 July 31 calls, most of which priced for $0.60 and
$0.65. Volume was almost 7 times previous open interest at the
strike, indicating that new positions were initiated.
lock in the price where shares can be purchased in the
Houston-based company, which gathers, processors, transports,
stores and distributes natural gas. Investors use them because
they're cheaper than buying shares, reducing losses in the event of
a pullback. The contracts can also generate significant leverage if
the stock rallies. (See our
SE rose 2.10 percent to $30.59 on Friday. The stock peaked around
$32 last month before it followed the market lower. It then bounced
at its 100-day moving average and around the same level where it
peaked in February, which some traders may consider a bullish chart
Total option volume was quadruple the daily average in the session,
with calls outnumbering puts by almost 13 to 1.