Market News

November 22, 2016  Tue 10:06 AM CT

Nabors Industries has been ripping higher in recent months, and traders are looking for more gains by Christmas.

OptionMonster's tracking program detected the purchase of about 10,000 December 15 calls for $0.38 to $0.48 today. Volume was more than 11 times the open interest in the strike, showing that this is fresh buying.

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)

NBR is up 0.42 percent to $14.28 in morning trading and is up 39 percent in the last three months. The energy-drilling services company is expected to report earnings after the close on Feb. 14.

Overall option volume is 5 times greater than average in the name so far today. Calls outnumber puts by a bullish 19-to-1 ratio.

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