Bulls targeting Baker Hughes
Someone sees upside in Baker Hughes.
OptionMonster's tracking program detected the purchase of 3,000 January 67.50 calls for $1.00. Volume was more than 5 times open interest at the strike, which indicates new money was put to work.
Calls fix the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. (See our Education section.) Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction.
BHI rose 2.27 percent to $65.34 on Friday and is up 28 percent in the last three months. The next quarterly report is estimated for pre-market hours on Jan. 26.
Overall option volume was 3 times greater than average. Calls outnumbered puts by a bullish 7-to-1 ratio.
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