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How trader is sticking with Kodiak

Mike Yamamoto (mike.yamamoto@optionmonster.com)

A large trader is apparently looking for Kodiak Oil & Gas looking to hit record highs in the next five weeks.

optionMONSTER's Heat Seeker system detected the sale of 16,898 July 13 calls for an average price of $1.04 and the purchase of 16,898 July 14 calls for $0.60, above the listed ask price at the time. Volume was below previous open interest in the lower strike but above it in the higher contracts, indicating that a long-call position was rolled higher.

The trader is closing the July 13 calls, which are now in the money , and opening a new position at a strike that is $1 higher while apparently taking some profits in the process. The new long calls are looking for KOG to rise above $14 by mid-July but will expire worthless if share remain below that level through mid-July. (See our Education section)

KOG rose 1.72 percent to $13.64 yesterday. The energy company broke out of an increasingly tight range last week and is closing in on its all-time high of $14.11 reached last October.

Total option volume in KOG topped 38,800, 6 times its daily average for the last month. Only 585 of those contracts were puts, a reflection of the session's bullish sentiment.

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