Trader buying more time for Bill Barrett
David Russell | [email protected]
optionMONSTER's Heat Seeker monitoring system detected the purchase of 5,000 September 25 calls for an average premium of $1.025 and the sale of an equal number of May 20 calls for $1.15. Volume was below open interest in the May contracts but not the Septembers, which indicates that an existing position was closed and rolled forward in time.
The investor collected a credit of $0.125 and now has an additional four months to profit from a rally in the Rocky Mountain oil stock. Adjusting the trade at this time prevented him or her from losing value quickly after the company's quarterly results on Thursday afternoon. (See our Education section)
BBG rose 0.55 percent to $20.16 yesterday and is up 25 percent in the last three months. It's been trying to work its way higher after hitting a multi-year low in 2012.
Total option volume was 7 times greater than average in the session, according to the Heat Seeker. Calls outnumbered puts by 31 to 1.