Options have been active in Newfield Exploration, and buyers were stepping in yesterday.
The September 25 calls lit up OptionMonster's trade scanners, with large blocks fetching $0.25 and then $0.30. More than 7,700 traded in volume well above the previous open interest of 3,100 contracts, so new money was definitely being put to work.
These calls lock in the price where the oil stock can be purchased, controlling moves to the upside at limited cost. They can also generate some extreme leverage if the shares move far enough.