Options Trading News

September 23, 2016  Fri 12:06 PM CT


Traders are looking for gains in EOG Resources by early next year.

optionMONSTER's monitoring system detected the purchase of more than 2,500 January 105 calls mostly for $1.51 today. This represents fresh buying, as volume was well above open interest of 1,007 contracts.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

EOG is down 2.95 percent to $89.88 in afternoon trading but is up 10 percent in the last three months. The oil and natural-gas producer is expected to release quarterly results after the close on Nov. 3.

Overall option volume is about average in EOG so far today, but calls outnumber puts by a bullish 3-to-1 ratio.

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