Will Talisman be a lucky charm?
Pete Najarian | [email protected]
The January 14 calls started lighting up our screens during the noon hour, and traders continued to snap up those contracts throughout the rest of the day. More than 14,000 of the options had changed hands by the end of the session, nearly all of them priced for $0.35, according to optionMONSTER's Heat Seeker tracking system.
These calls lock in the price where TLM can be purchased. Because they cost much less than the stock itself, they can provide significant leverage on a percentage basis if the stock rallies. (See our Education section)
TLM rose 4.43 percent to $12.01. The Canadian oil and natural-gas company has been weak for a long time, and the bulls apparently think that it's time for this name to catch up with the rest of the energy space.
Total option volume in Talisman was 8 times greater than average in the session. More than 33,000 calls traded in the name versus just 5,500 puts.
Disclosure: I own TLM calls.
(A version of this post appeared on InsideOptions Pro yesterday.)