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Options Trading News

March 31, 2014  Mon 11:35 AM CT

COP: SEE CHART GET CHAIN FIND STRATEGIES
ConocoPhillips has run hard, and the bulls aren't giving up yet.

optionMONSTER's Heat Seeker monitoring program detected the purchase of some 13,900 April 72.50 calls for $0.27. A similar number of equal number of April 70 calls was sold at the same time for $1.29, but volume was below open interest in those contracts.

As we reported on March 18, April 70s were bought for $0.30 to $0.35, so the investor is now rolling that highly profitable trade up to the next strike. Making the adjustment let him or her collect $1.02 while remaining exposed to further gains through the new long calls if the oil driller continues to rally. (See our Education section)

COP is up 0.07 percent to $70.41 and is up about 4 percent from our initial alert. It's been rising along with other energy names as investors bet on a stronger global economy. The stock hit an all-time high of $74.59 in late October and pulled back under $63 early last month before bouncing.

Total option volume is quadruple the daily average so far today, according to the Heat Seeker. Calls outnumber puts by a bullish 13-to-1 ratio.
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