Market News

October 14, 2016  Fri 8:22 AM CT

Traders are counting on McDermott International to continue its recent uptrend.

optionMONSTER's market scanner shows that 5,800 May 7 calls were purchased for $0.40 to $0.50 yesterday. This represents fresh buying, as open interest in the strike was just 224 contracts before the session began.

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)

MDR rose 1.15 percent to $5.28 yesterday and is up 9 percent in the last month. The offshore-energy engineering company is expected to report earnings after the close on Nov. 7.

Overall option volume was 8 times greater than average in the name yesterday. Calls outnumbered puts by a bullish 23-to-1 ratio.

News Archives
OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market VIEW FULL REPORT

Education & Strategy

From the AP Archives: If It's Not There...

I have talked at great length about the fact that as an individual investor, you do not have to be in the market at all times.

More education articles »