Energy has been the strongest sector recently, and bullish option activity is building in Occidental Petroleum.
optionMONSTER’s Heat Seeker tracking program detected heavy call buying in the company this week, starting with the August 105s for $0.85 on Tuesday. Traders followed up yesterday with the purchase of 5,000 November 100 calls for $3.15 and 10,000 August 110s for $0.41. Volume exceeded open interest across the board, indicating that new money was put to work.
These long calls lock in the price where shares can be purchased, letting investors cheaply position for a rally without necessarily buying the shares. That allows the traders to avoid tying up large amounts of capital on a stock that has been trapped in a range for years.
— Option Monster