Learn the trade here. Make it on tradeMONSTER

Options Trading News

December 7, 2012  Fri 11:40 AM CT

EXC: SEE CHART GET CHAIN FIND STRATEGIES
Exelon has been trapped in a tight range since falling hard after its last earnings report, but one trader is apparently betting on a rally by springtime.

optionMONSTER's Heat Seeker tracking system detected the purchase of 2,000 April 31 calls in 3 minutes today, mostly for $0.60. That volume was more than double the strike's open interest of 862 contracts at the start of the session, so this is fresh buying.

EXC is down fractionally at $29.43 in early afternoon trading. The electricity-generation company plunged from $36 on Nov. 1 after announcing third-quarter results and have been trading in a tight range between about $28.50 and $30 since then.

Today's long calls are looking for EXC to gain more than 7 percent by expiration in mid-April. If the stock is below the $31 strike price at that time, those contracts will expire worthless. (See our Education section)

Only 66 puts have traded in today's session, a reflection of the bullish sentiment. The trades follow bullish call buying in earlier-dated contracts on EXC on Nov. 2.
Share this article with your friends


TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Why traders hedge with sector ETFs

Many people who are not familiar with options think that they increase risk, but their first and primary purpose is...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER