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September 25, 2012  Tue 3:16 AM CT

KWK: SEE CHART GET CHAIN FIND STRATEGIES
Quicksilver Resources rose with bullish option activity yesterday after announcing a joint energy-drilling project with Royal Dutch Shell.

optionMONSTER's systems detected the purchase of 1,884 October 5 calls, mostly for $0.10. That was more than 10 times the open interest in the strike at the beginning of the day, so this is fresh buying.

KWK rose 2.43 percent to close at $4.21 yesterday. Shares of the oil and natural-gas company have been rising since starting the month at a low of $3.32 but are still trading at less than half of their 52-week high of $8.94.

If the calls purchased yesterday are held until expiration in mid-October, the stock would need to gain more than 21 percent for them to be profitable. The option premiums could also rise before then, allowing traders to sell the calls with a profit earlier. (See our Education section)

Yesterday's trading pushed overall volume in the name to 3.5 times its daily average. Calls outnumbered puts by nearly 5 to 1, a reflection of the session's bullish sentiment.
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It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

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