Bulls Snap Up Independent Oil Company Options
Brigham Exploration said last week that harsh weather will harm oil production—but that didn't stop bulls from charging into upside options.
The July 30 calls lit up OptionMonster's tracking systems, with more than 10,000 bought for $0.75. The July 28s also saw heavy volume, trading more than 5,000 times for $1.50 to $1.60.
Almost 20,000 calls changed hands in total, versus fewer than 1,300 puts. Overall option volume in the name was almost 5 times above average.
The oil company's shares ended Friday down 0.11 percent to $27.52 but have been holding support at their 200-day moving average. (See tickerfor today's quotes.) The company explores for oil and natural gas in the Rocky Mountains, the Gulf Coast, the Anadarko Basin, and West Texas.
Management said on Thursday that second-quarter output will come in at the low end of its forecast range after weather at North Dakota's Williston Basin was the worst in almost 100 years. The good news, however, was that full-year guidance was left unchanged.
Pete Najarian is long BEXP.
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