Short-term traders are looking for a quick pop in Weatherford.
More than 5,600 Weekly 16 calls that expire at the end of this week were bought for $0.06 to $0.09 in the final 20 minutes of last Friday's session. These are all new positions, as there was no previous open interest in the strike.
These long calls lock in the price where traders can buy the stock through the end of this Friday's session no matter how far WFT might rise. But the contracts will expire worthless if shares remain below $16 in that time.
WFT rose 1.7 percent on Friday to close at $15.51. The company, which provides equipment and services to oil and natural-gas drillers, had pulled back sharply from its 52-week high of $17.38 reached in early November but bounced near its 200-day moving average around the $14.50 level on Dec. 18. (See our Education section)
Total option volume in Weatherford was just shy of 8,500 contracts on Friday, 63 percent higher than its daily average for the last month. Overall calls outpaced puts by more than 4 to 1.
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