Market News

November 28, 2016  Mon 4:45 AM CT

Traders are making cheap bets on more gains in Noble.

OptionMonster's market scanner shows that 5,400 Weekly 6.50 calls expiring on Dec. 2 were purchased for $0.04 to $0.06 on Friday. This represents fresh buying, as volume surpassed open interest of 2,169 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)

NE fell 3.54 percent to $5.72 on Friday but is up 8 percent in the last week. The offshore energy-drilling contractor is expected to report earnings after the close on Feb. 1.

Overall option volume was about average in NE on Friday, but calls outnumbered puts by a bullish 5-to-1 ratio.

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