FirstEnergy is a slow-moving utility, but it handed traders some fast money on Friday.
Shortly after the opening bell, optionMONSTER’s Heat Seeker system detected heavy buying in the November 38 calls and the November 39 calls. The paper hit with the stock holding multi-year lows and followed similar bullish activity in recent weeks.
FE then started grinding higher, and the calls began doing their work. The stock was up 1.36 percent to $38.84 by the end of the session, but the options had almost doubled in value.
The November 38s, which initially priced for $0.35 to $0.55, traded for as much as $1.10. And the November 39s climbed to $0.45 from their early range between $0.20 and $0.25. Some 5,800 contracts traded in the 38s, while the 39s saw volume close to 5,000.
— Option Monster