OptionsHouse

Options Trading News

September 19, 2016  Mon 12:35 PM CT

WLL : SEE CHART GET CHAIN FIND STRATEGIES

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.

Share this article with your friends


Related Stories

WLL

Trade sees ceiling in Whiting Petroleum

September 23, 2016

A large position is betting that upside potential will be limited in the oil and gas producer, which has dropped 30 percent in the last three months.

OptionsHouse

Premium Services

Education & Strategy

Using spreads to minimize risk

Last week we discussed the risk vs reward profile of a debit call spread in Wells Fargo (WFC). This week we will run thru the risk vs reward of selling a credit put spread to achieve the same exposure of that debit call spread.

View more education articles »