Market News

January 6, 2017  Fri 11:28 AM CT

Weatherford is drawing heavy upside option activity for the second time this week.

Our tracking program detected the purchase of about 13,600 March 7 calls for $0.32 to $0.41 today. Volume far exceeded the strike's open interest of 536 contracts, indicating that these are new positions, and follows large buying in March 6 calls on Tuesday that resulted in a quick winning trade cited on our InsideOptions Pro subscription service.

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)

WFT is up 3.37 percent to $5.98 in afternoon trading and has jumped 17 percent just in the last week. The oilfield-services provider is scheduled to report earnings after the close on Feb. 1.

Overall option volume in the name is twice its daily average so far today. Calls outnumber puts by a bullish 5-to-1 ratio.

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