Why Are Options Bullish on This Oil Firm?
Sunoco surged last week and saw upside option activity Friday in the April contracts.
OptionMonster's real-time systemsdetected 7,500 April 29 calls bought at the same second for $1.20. The buying dwarfed both the open interest of 561 contracts and the average daily volume of just 40 calls at the strike.
- More Options Tips from Pete Najarian
- Options Tips from Jon Najarian
- Read The CNBC Stock Blog
Sunoco , which manufactures and markets various petroleum products, closed Friday at $29.21, up 2.6 percent on the day and more than 10 ercent on the week. The stock has underperformed in the last year since trading over $45 in January 2009.
For calls purchased Friday to be profitable, the stock would need to rise about $1, or roughly 3.4 percent, by the time the options expire in mid-April. The company is schedule to report its next earnings results on May 3.
Options Trading School:
Sunoco Competes With: