Anadarko Petroleum has been climbing, and one big investor is positioning for a gusher.
optionMONSTER's Heat Seeker tracking program detected the purchase of 25,870 February 80 calls for $2.42. Seconds later, 20,696 February 75 calls were sold for $4.25 against previous open interest.
This suggests that the trader bought the February 75s at a previous date, made money on those calls, and then rolled the position to the February 80 strike. The trader collected $2.5 million in the process, which may have been the initial investment.
The number of contracts owned was also increased, which will provide enhanced leverage in the event of a big rally. (See our Education section for more on how option strategies can be tailored to specific market expectations.)
APC is up 0.67 percent to $72.77 this morning and 11 percent in the last month. The oil and natural-gas company is now back near the top of its recent trading range, which could be leading some chart watchers to believe that the stock is at risk of a pullback. Today's call roll matches that belief because the investor recovered some of his or her capital while remaining positioned for a potential breakout.
Total option volume is quadruple the daily average so far in the session, according to the Heat Seeker. Calls outnumbered puts by more than 100 to 1.
More From optionMONSTER