Long-term bet on Energy Transfer

A long-term trade is bullish on pipeline operator Energy Transfer Partners.

optionMONSTER’s Heat Seeker tracking system detected the purchase of 5,000 January 2016 57.50 calls in one print for the ask price of $2.80 today. Open interest in the strike was just 401 contracts before the trade appeared, showing that is a new position.

These long calls lock in the price where the stock can be purchased through early 2016 no matter how far it might climb. They could be sold earlier at a profit if premiums rise with a rally before then, providing potentially significant leverage, but the contracts will expire worthless if shares remain below $57.50.

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