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More Upside Expected From Oil Service Company

Thursday, 11 Jun 2009 | 8:09 AM ET

BJ Services had surged along with other oil service companies for much of this quarter before faltering lately, and options traders are apparently looking for more upside.

Just after noon yesterday OptionMonster's systems lit up with several large blocks of the July 17.50 calls bought for $0.50, followed by one enormous print of 18,000 purchased for $0.55 just minutes later. More than 39,000 calls changed hands by the end of the day at that strike, more than four times open interest and dwarfing the average call volume of 730.

BJ Services ended the regular session up slightly to $15.58 on heavy volume and rose another 1.41 percent in after-hours trading. The shares would need to rise another 16 percent or so by July expiration for yesterday's trades to make a profit.

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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com.

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