Big profits in Oneok as pipelines rally
David Russell | [email protected]
optionMONSTER's Heat Seeker monitoring program detected buying in the OKE October 50 calls for $0.80 earlier in the month. Shares have been rising since, and those calls have now inflated to $1.30.
The stock is back on Heat Seeker today, this time with more than 17,000 October 52.50 calls purchased for $0.65. Those traded against open interest of just 180 contracts, so new money was definitely put to work on the long side in a big way.
The investor now has the right to buy OKE for $52.50 on expiration, no matter how high it may be. That will result in significant leverage if the stock continues to advance.
OKE is up another 2.37 percent to $47.44 in afternoon trading. Pipelines have been extremely active in the last week, with other companies including Oneok Partners, Energy Transfer and Energy Transfer Partners all experiencing unusual call volume.
It's part of a larger trend of increased energy production in the United States. optionMONSTER's proprietary researchLAB tracking tool shows pipelines and fracking stocks both outperforming the broader market this year as investors seek exposure to an industry that's returning to growth after decades of stagnation.
Total option volume in OKE is 19 times greater than average so far today, according to Heat Seeker. Calls outnumber puts by more than 30 to 1.