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April 25, 2013  Thu 4:14 AM CT

GTE: SEE CHART GET CHAIN FIND STRATEGIES
The energy bulls were hunting for new opportunities yesterday, and Gran Tierra Energy became their latest target.

optionMONSTER's Heat Seeker system shows that 3,400 November 7.50 calls were bought in one print for $0.20. The volume was above the strike's open interest of 2,126 contracts before the trade appeared, clearly indicating that it is a new position.

These long calls, which lock in the price where traders can buy shares, are looking for GTE to climb above $7.70 by mid-November. The options could be sold earlier at a profit if their premiums rise with a rally before then, but they will expire worthless if the stock remains below the $7.50 strike price. (See our Education section)

GTE rose 2.02 percent yesterday to close at $5.32, right at its 200-day moving average. Shares have been declining since hit resistance around $6.20 in early March. The Canadian oil and natural-gas producer, which operates in Latin America, has not yet scheduled its next earnings report.

Yesterday's call buying made up almost all of the total volume in GTE, which has averaged just 155 contracts a day for the last month. No puts traded in a session, a reflection of the bullish sentiment.
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Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

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