Exelon call buyers look for upside jolt
Mike Yamamoto | [email protected]
optionMONSTER's Heat Seeker system shows that about 1,600 February 30 calls were purchased for $0.35 on Friday. The volume was almost double the the strike's open interest of 831 contracts before trading began that day, indicating that this is fresh buying.
EXC rose 0.1 percent to $29.29 on Friday, less than a dollar of their 52-week low of $28.40. The stock plunged from the $36 level after the company's last quarterly report in early November, and shares have been trapped in a tight range mostly between $29 and $31.50 since Thanksgiving.
Friday's long calls, which lock in the price where traders can buy the stock, are looking for EXC to gain roughly 4 percent by Feb. 15. But those contracts will expire worthless if the shares close below the $30 strike price at that time. (See our Education section)
Total Exelon calls outpaced puts by more than 2 to 1 on Friday.