Options Trading News

September 19, 2016  Mon 12:35 PM CT


Traders are betting that Whiting Petroleum will rally in the next month.

optionMONSTER's tracking program detected the purchase of about 5,200 October 8.50 calls for $0.15 to $0.20 today. There was no open interest in the strike before session began, showing that this is fresh buying.

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)

WLL is off 1.21 percent to $6.95 in afternoon trading and is down 40 percent in the last three months. The oil and gas producer is expected to announce quarterly results after the close on Oct. 26, three sessions after today's long calls expire.

Overall option volume is about average in WLL so far today, but calls outnumber puts by a bullish 3-to-1 ratio.

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