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What's behind call surge in Petrobras

Chris McKhann (chris.mckhann@optionmonster.com)

Petrobras saw a huge call trade as shares of the Brazilian energy giant jumped at the end of last week.

optionMONSTER systems show that the May 20 and June 20 calls each traded 26,440 calls on Friday. The May contracts were sold for $0.02 against previous open interest of 28,128, while the June options were bought for $0.08 compared to open interest of 332 less than 30 seconds later.

This could be a calendar spread that cost just $0.06 and is looking for PBR to trade up to $20. Alternatively, the trader could be selling the May calls to close that position and roll it to June, buying another month for the long calls to work. (See our Education section)

PBR gained 4.42 percent to close at $16.52 on Friday. The stock is in the middle of its recent range, as it traded up to resistance at $18 a month ago and down to its 52-week low of $14.40 at the start of March.

More than 83,000 PBR options changed hands in the session, compared to a daily average of 16,300 in the last month.

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