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Options Trading News

January 9, 2012  Mon 1:17 AM CT

TLM: SEE CHART GET CHAIN FIND STRATEGIES
Investors expect good news from Talisman Energy.

optionMONSTER's Heat Seeker monitoring system detected the purchase of more than 9,000 January 13 calls, most of which priced for $0.25 and $0.30. Volume was almost 6 times open interest in the strike.

TLM declined 6.08 percent to $12.36 on Friday, shuffling sideways since the market bottomed in October. The Canadian oil driller has struggled with difficulties with offshore wells but on Nov. 2 said results were good at shale fields in the United States and Canada. (See researchLAB for more on shale energy companies)

Management is scheduled to provide full-year guidance on at conference call at 1 p.m. ET tomorrow. Given the bullishness in other shale names, the call buyers apparently think the news will be good and are looking for TLM to rip higher. If they're right, those calls could easily double or triple in value. (See our Education section)

Overall option volume was 22 times greater than average in TLM on Friday, with calls outnumbering puts by 7 to 1.
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