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.

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