OptionsHouse

Options Trading News

May 2, 2014  Fri 12:20 PM CT

EQT: SEE CHART GET CHAIN FIND STRATEGIES
EQT has been rallying on the heels of a strong quarterly report, and bullish option activity continues to build in the name.

optionMONSTER's Heat Seeker monitoring program detected the purchase of more than 2,600 June 105 calls, most of which priced for $7.40 to $8.60. Volume was more than 4 times the previous open interest in the strike, indicating that new money was put to work.

Long calls lock in the price where a stock can be purchased, providing exposure to a rally with limited risk. Today's contracts are also in the money, so they will closely track movements in the underlying share price. It's a cheap way to get leverage on a stock already in the triple digits. (See our Education section)

EQT is up 0.78 percent to $110.10 in afternoon trading and has risen 23 percent this year as investors have flocked to companies in the domestic-energy space. The natural-gas producer has also been recommended on our proprietary Market Action webinar several times.

Quarterly results on April 24 also crushed expectations on the top and bottom lines. Shares gapped higher on the news but pulled back, and now the bulls are looking for the uptrend to continue.

Overall option volume is already 6 times higher than its daily average so far in the session, with calls outnumbering puts by more than 7 to 1.
Share this article with your friends


Related Stories

EQT

Traders bet EQT will heat up soon

February 23, 2015

The natural-gas company held support in January and rose sharply this month with positive quarterly results on Feb. 5 but have been trading sideways in recent weeks.

Invest Like a Monster - Las Vegas: March 13-14

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Webinar Recording

Turbo Charge Your Trading Profits

Education & Strategy

The Strike-Based Greeks

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

View more education articles »