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September 16, 2013  Mon 12:20 PM CT

APC: SEE CHART GET CHAIN FIND STRATEGIES
One big investor thinks Anadarko Petroleum will keep going and going.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 6,100 October 95 calls $3.10. An equal number of October 92.50 calls were sold at the same time for $4.40 but volume was below open interest in those, so it appears that a winning trade rolled to the higher strike.

By adjusting the position this way, the trader collects a credit of $1.30 while staying in the game for continued profits if Texas-based oil driller keeps rallying. (See our Education section for more on how options can help you manage positions more effectively.)

APC is down 0.46 percent to $94.27 in afternoon trading but is up 27 percent so far this year. It's been climbing along with other domestic energy names, consolidating above its previous all-time highs from early 2012.

Total option volume is slightly above average in APC today. Calls outnumber puts by a bullish 8-to-1 ratio.
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So far, my articles have taken you through a logical progression of option theory and fundamental concepts of options. As of yet, I have not mentioned a single strategy and for a good reason! The actual application of a strategy should come AFTER you learn about the option product itself.

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