Trader extends upside position in Exelon

As Exelon hovers just above its 52-week low, one trader is buying more time for the electricity producer to rally.

optionMONSTER's Heat Seeker system detected the sale of 3,000 February 39 calls for $0.61 against open interest of 3,230 contracts and, 8 seconds later, the purchase of 3,000 April 39 calls for $1.45 against open interest of 1,748.

Because the February calls were below the open interest, it suggests that the position was closed a day before they expire to open the new one in April. This roll forward cost a net $0.84 and extends the long position by two months. (See our Education section)

The new long calls will be profitable if the stock is above $40.45 when they expire on April 20, roughly 2.5 percent higher than today's price. EXC, which is up 1.05 percent to $39.50 this afternoon, was trading just below $44 before plunging at the end of 2011.

Overall calls at all strikes in the name outnumber puts by more than 5 to 1 so far today.

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