Traders look for bounce in Weatherford
Weatherford fell sharply on weak quarterly results last week, but traders are betting on a bounce.
optionMONSTER's monitoring system detected the purchase of 11,800 June 6 calls for $0.40 to $0.43 today. Volume was more than 5 times open interest at the strike, which indicates new money was put to work.
Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)
WFT is down 5.29 percent to $5.37 in afternoon trading and has dropped 30 percent in the last week. The oilfield-service company missed estimates on the top and bottom lines last Wednesday. Its next earnings numbers are expected after the close on July 20.
Overall option volume in the name is twice its daily average so far today.
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