Bulls drilling for gusher in Whiting
Traders are looking for another gusher in Whiting Petroleum after making big profits last month.
optionMONSTER's Heat Seeker monitoring program detected the purchase of 4,600 October 18 calls for $1.45. Volume was more than quadruple open interest at the strike, which indicates new money was put to work.
Long calls lock in the price where investors can buy shares, allowing them to profit from a rally with limited capital at risk. They can also generate significant leverage on a percentage basis. (See our Education section)
WLL is down 1.76 percent to $16.23 in afternoon trading as it tries to stabilize at long-term support levels from 2009. It's down from an all-time high over $90 a year ago thanks to a huge selloff in the energy space during that time. Short interest accounts for about 10 percent of its float and the stock trades for about half its book value.
Denver-based exploration and production company previous hit our scanners on Aug. 26 , with short-term Weekly 15 calls bought for $0.50. It popped in coming days, handing our premium subscribers profits of about 500 percent.
Overall option volume is twice average so far today, with calls accounting for a bullish two-thirds of the total.
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