Najarian on Options: A Bullish Move on BP
BP is seeing bullish options activity today after the company reaffirmed its commitment to dividends and capital expenditures.
Traders bought the April 50-60 bull call spread at $2.95 this morning, according to OptionMonster's Heat Seeker system, which tracks unusual trading activity. The open interest at these two strike prices is 1,680 and 3,470 contracts respectively, while the entire April call open interest is less than 10,000 contracts.
There are a few possible reasons for the bullish move in BP, which is trading some $32 under its 52-week high at about $45.50 today. In addition to the positive comments about its spending and dividends, made by BP chief economist Christof Ruehl at a London conference, the company's Russian venture TNK-BP ended a management dispute by removing CEO Robert Dudley.
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Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.