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June 28, 2013  Fri 4:14 AM CT

Traders apparently think that the tide finally turning in Goodrich Petroleum.

optionMONSTER's Heat Seeker monitoring program detected the purchase of some 6,000 August 15 calls for $0.40 to $0.45. Volume was more than 200 times previous open interest at the strike, so new positions were clearly initiated.

These long calls cheaply set the price where shares can be purchased in the Houston-based energy producer. They can generate some nice leverage if it rallies while reducing the amount of capital at risk in the event of a drop. (See our Education section)

GDP fell 0.47 percent to $12.71 yesterday and has been working its way lower ever since the oil bubble broke in mid-2008. But now it's trying to make a higher low and bounce at its 200-day moving average, which could be leading some chart watchers to believe that it's ready to bounce. The stock also peaked around $16 in the spring, so those August 15s would pay off nicely from a return to those levels.

Total option volume in the name was 11 times greater than average in the session, according to the Heat Seeker. Calls outnumbered puts by 22 to 1.
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