Bull buys into Halcon before earnings

Halcon Resources is drawing a bullish play ahead of the company’s quarterly report next week.

A block of 2,000 March 6 calls was purchased for the ask price of $1.55 about 20 minutes after the open, according to optionMONSTER’s Heat Seeker system. This is clearly a new position, as open interest in the strike was just 38 contracts before the session began.

The long calls, which lock in the price where the trader can buy the stock, are betting that HK will pop by mid-March. But these in-the-money options will rapidly lose value if the shares don’t rise.

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— Option Monster

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