Markets

Bulls step on gas for ConocoPhillips

ConocoPhillips has been ripping higher for the last month, and the bulls are looking for more upside.

Our Heat Seeker system detected the purchase of more than 13,000 November 60 calls, most of which priced for $1.49 to $1.82, against open interest of 9,561 contracts. Calls in the integrated oil name are outnumbering puts by a bullish 6-to-1 ratio so far today.

COP is up 0.31 percent to $57.71 in morning trading and has risen 17 percent since the beginning of July. The oil and gas company reported better-than-expected earnings last week, fueled by a big improvement in refining margins and higher crude prices.

The stock is now trying to break through the same $57.50 level where it peaked in mid-May before plunging below $50. It has also managed to stay above its key 200-day moving average since October (purple line on chart), which some traders may consider evidence a bullish trend remains intact.

Bulls may like the fact that COP has significantly outperformed rivals, chalking up a 28 percent gain in the last year. Exxon Mobil fell 11 percent over the same period, while Chevron climbed 12 percent.

Today's call buyer is looking for COP to keep running and needs the stock to climb least 7 percent more by expiration to earn a profit.

(A version of this post appeared on InsideOptions this morning. Chart courtesy of tradeMONSTER.)

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.

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