Heckmann is holding its ground, and a bullish position is being adjusted.
optionMONSTER's Heat Seeker tracking system detected a surge of activity in the December 5 calls and the March 5 calls. While there were several canceled transactions, it appears that an existing long strategy from the spring is getting extended three months into the future.
On May 18, roughly 3,000 December 5 calls were bought and 3,000 December 5 puts were sold to create a position that will simulate ownership in the energy-service company. That position appears to have grown since then because both options now have open interest in excess of more than 10,000 contracts.
Some 5,400 of those calls were sold yesterday for $1.05 to $1.15. A matching number of March 5 calls traded at the same for $1.35, which suggests some of the position was rolled further at a cost of about $0.20.
HEK, which rose 2.32 percent to $6.17 yesterday, has been holding up better than the rest of the market or most other energy-related stocks in recent months. The company provides water to drilling companies, which seems to be growing as more needed as novel forms of shale production gain popularity.
The next scheduled event that could serve as a potential catalyst is the release of second-quarter results after the bell on Aug. 9.
Overall option volume in HEK was more than 29 times greater than average, with not a single put changing hands yesterday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
