Why trader is turning bullish on Exelon
Exelon may be breaking out of a multi-month range, and at least one trader is betting that the electricity producer has enough juice to run higher.
optionMONSTER's Heat Seeker system detected the purchase of 1,669 March 32 calls in 4 seconds today, almost all of them going for $0.40. The volume was nearly 4 times higher than the strike's open interest of 442 contracts before today's trading began, clearly indicating that this is fresh buying.
EXC is up 0.95 percent to $31.48 in afternoon trading, two sessions after closing above $31 for the first time since Nov. 9. The stock had been trapped in a tight range until last Friday, mostly between $29 and $30.60.
Today's long calls , which lock in the price where traders can buy the stock, are looking for EXC to close above the $32 strike price by expiration in mid-March. The trade follows buying in the March 30 and 31 calls on Friday, activity that appeared to signal a reversal from bearish sentiment earlier last week. (See our Education section)
Total calls in the name outnumber puts so far by more than 2 to 1.
More From optionMONSTER
