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Why Are Call Buyers Stepping Into This Offshore Driller?

Hornbeck Offshore Services has gotten hammered along with BP and others in the energy space after the Deepwater Horizon oil spill, but call buyers stepped in Friday.

OptionMonster's tracking systemsdetected a surge of activity in the July 17.50 strikes, which traded early in the session for $0.20. The buying continued, boosting the premiums to $0.25 and then $0.30 as the stock steadily pushed higher. By the end of the session 2,595 calls had changed hands versus open interest of just 359 contracts.

Shares in the company , which operates offshore support and supply vessels to energy companies in the Gulf of Mexico, climbed 4.46 percent to $14.98 on Friday. They traded over $24 in early May but got smacked all the way down to below $13 in early June after the accident. Earlier this week, however, the CEO and other insiders stepped in to buy stock around the $14.30-$14.50 level.

Judging by that and the options action, it looks as if there is a growing belief that Hornbeck will rebound to the upside. It needs to rally more than 18 percent by expiration for the call buyers to turn a profit.

Friday's activity pushed total options volume in the name to four times greater than average. Calls outnumbered puts by 19 to 1.

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Hornbeck Offshore Services Competes With:

Seacor Holdings

Tidewater

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Disclosure:

Najarian owns HOS calls

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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