Bulls roam in Range Resources
Traders are looking for Range Resources to rally in the next month.
More than 6,000 June 65 calls were purchased for $0.80 to $1 yesterday, according to optionMONSTER's Heat Seeker tracking program. This represents fresh buying, as open interest in the strike was just 869 contracts before the session began.
These long calls lock in the price where the stock can be purchased through mid-June 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 $65. (See our Education section)
RRC fell 2.26 percent to $59.78 yesterday. The natural-gas and oil producer rebounded sharply after hitting a 52-week low of $43.88 in mid-March, climbing above $65 early this month before pulling back.
Total option volume in the name reached 10,300 yesterday, about 10 times its daily average for the last month. Overall calls outpaced puts by 3 to 1.
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