Options Trading News

One investor thinks that Kodiak Oil & Gas is going places this autumn.

optionMONSTER's Heat Seeker monitoring program detected the purchase of about 2,600 October 9 calls for $0.80 and $0.85. The same number of September 9 calls were sold at about the same time for $0.45, but volume was below open interest in that contract.

The investor apparently came into the session long the September calls and rolled the position forward by one month. They now have more time to profit from a rally in the company, which focuses on the extraction of unconventional shale-energy deposits in North Dakota and Montana. He or she paid about $0.40 to make the adjustment.

KOG rose 1.12 percent to $9.02 yesterday. It more than doubled between last October and late February before pulling back in the spring. The shares then double-bottomed around $7 in June and have been pushing higher since.

Overall option volume was twice the daily average, with calls outnumbering puts by more than 6 to 1.