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Call buyers target Oasis Petroleum

Mike Yamamoto (mike.yamamoto@optionmonster.com)

Oasis Petroleum has pulled back from all-time highs in recent weeks, but traders are betting that the stock will bounce this month.

More than 5,000 July 40 calls traded in a strong buying pattern on Friday, with premiums ranging from $0.85 to $1.60, according to optionMONSTER's Heat Seeker tracking system. The volume was well above the strike's open interest of 1,361 contracts before the session began, indicating that these are new positions.

OAS rose 1.46 percent on Friday to close at $38.87. The oil and natural-gas company, which develops shale-energy resources in Montana and North Dakota, peaked at $42.89 on June 18.

Friday's long calls , which lock in the price where traders can buy the stock, are looking for OAS to rally back above $40 in the next three weeks. But these contracts could expire worthless if shares remain below that level. (See our Education section)

Total option volume in the name was 8,663 contracts, 11.5 times its daily average for the last month. Calls outnumbered puts by more than 10 to 1, a reflection of the session's bullish bias.

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