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Call buyers back in NextEra Energy

David Russell (david.russell@optionmonster.com)

NextEra Energy has pulled back to a key level, and momentum traders are piling in.

optionMONSTER's Heat Seeker system detected the purchase of more than 4,300 January 82.50 calls, most of which priced for $2.20. Volume was more than 16 times open interest at the strike, indicating that new money was put to work.

These long calls lock in the price where shares can be purchased in the power-generation company, letting investors cheaply position for gains and enjoy major leverage if the stock rallies. (See our Education section for more on how to manage trades more effectively with options.)

NEE rose 0.41 percent to $80.10 yesterday and is up 16 percent so far this year. That's almost triple the gain of the broader utility sector.

Back on June 14, traders bought the July 80 calls for $1.40 to $1.55. The stock then proceeded to rally, and those contracts tripled in value by expiration.

Total option volume was 7 times greater than average in NEE yesterday, with calls outnumbering puts by a bullish 15-to-1 ratio.

(A version of this post appeared on InsideOptions Pro yesterday.)

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