Market News

November 28, 2016  Mon 5:47 AM CT

Traders are positioning for a possible pullback in Apache this week.

OptionMonster's tracking program shows that some 2,700 Weekly 60 puts expiring this Friday were bought for $0.62 to $0.77 at the end of last week. This represents fresh buying, as volume was more than 16 times the open interest in the strike.

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)

APA fell 1.27 percent to $62.84 on Friday but is up 21 percent in the last three months. The natural-gas and oil producer is expected to announce quarterly results in pre-market hours on Feb. 23.

Overall option volume was about average in APA on Friday.

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