Weatherford International has been running like a horse, and one investor is adjusting a position to stay in the saddle.
optionMONSTER's Heat Seeker tracking system detected the purchase of 33,500 January 30 calls for $1.42. An equal number of August 27 calls were sold for $1.37, but volume was below open interest, which suggests that a position was rolled from one contract to the other.
The strategy let the investor obtain an additional five months of upside exposure to the energy-drilling stock at a net cost of just $0.05.
WFT fell 2.73 percent to $23.52 yesterday but has rallied 52 percent in the last six months. It dropped sharply last week but seems to be holding support at its 50-day moving average.
The company's last earnings report on Jan. 25 missed forecasts, but it still made new highs as investors anticipate continued strength in the oil and natural-gas sector.
The call roll pushed total option volume in WFT to 8 times greater than average.
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