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Bulls aim for new highs in Exterran

David Russell (david.russell@optionmonster.com)

Exterran has been ripping higher, and the bulls are piling in.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 5,600 March 40 calls yesterday, with the largest block fetching $0.85. Volume was more than 13 times higher than the previous open interest in the strike, which indicates that new positions were initiated.

These long calls lock in the price where shares can be purchased in the natural-gas compression company, letting investors cheaply position for a move to the upside. They can also generate significant leverage if a rally unfolds. (See our Education section)

EXH rose 2.82 percent to $39.32. It surged almost 5 percent the previous session after earnings beat estimates amid increased energy production in the United States. Other companies, like makers of railroad tanker cars , have also benefited from the trend.

Total option volume was 26 times greater than average in the session, according to Heat Seeker. Calls outnumbered puts by more than 100 to 1.

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