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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.

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.

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Options Trading School:

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Sunoco Competes With:

Hess

BP

ConocoPhillips

Exxon Mobil

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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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Disclaimer

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Price
 
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BP.
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COP
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HES
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SUN
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XOM
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