Why trader is turning bullish on Exelon
Mike Yamamoto | [email protected]
optionMONSTER's Heat Seeker system detected the purchase of 1,669 March 32 calls in 4 seconds today, almost all of them going for $0.40. The volume was nearly 4 times higher than the strike's open interest of 442 contracts before today's trading began, clearly indicating that this is fresh buying.
EXC is up 0.95 percent to $31.48 in afternoon trading, two sessions after closing above $31 for the first time since Nov. 9. The stock had been trapped in a tight range until last Friday, mostly between $29 and $30.60.
Today's long calls, which lock in the price where traders can buy the stock, are looking for EXC to close above the $32 strike price by expiration in mid-March. The trade follows buying in the March 30 and 31 calls on Friday, activity that appeared to signal a reversal from bearish sentiment earlier last week. (See our Education section)
Total calls in the name outnumber puts so far by more than 2 to 1.