Bulls drill into Quicksilver Resources
Mike Yamamoto | [email protected]
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.