Someone apparently thinks that there is more fuel in Dresser Rand's tank.
The oil-service stock has been ripping since the summer and is up another 2.32 percent to $57.44. Earlier in the session DRC touched a new all-time high of $57.74.
optionMONSTER's Heat Seeker tracking system shows unusual activity in calls, with a block of 1,000 January 55s sold for $2.70 and 1,000 January 60s bought for $0.60. Volume was below open interest at the lower strike, which indicates that an existing position was closed and rolled higher.
The investor collected $2.10, recovering most of the capital at risk, while remaining exposed to further gains with the 60s if DRC continues to advance. See our Education Section for more on how to manage positions using options.
Almost 2,500 contracts have traded so far today, which is 10 times the average amount in one session. Not a single put has crossed, either, which reflects the bullish tone.
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