Market News

January 6, 2017  Fri 6:45 AM CT

Range Resources attracted upside option activity yesterday for the second session in a row.

Our monitoring program shows that 2,100 June 34 calls were purchased for $4.20 to $4.40. This is new positioning, as open interest in the strike was just 89 contracts before the trades occurred, and follows a bullish three-way trade a day earlier.

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)

RRC rose 1.94 percent to $34.20 yesterday but is down 14 percent in the last three months. The oil and natural-gas producer announced bullish results on Oct. 25 and is expected to release its next quarterly numbers after the close on Feb. 23.

Overall option volume was about average in RRC yesterday, but calls outnumbered puts by a bullish 6-to-1 ratio.

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