Option Bulls Continue to Build in BP
Bullish option activity keeps flowing in BP.
Last week, OptionMonster's tracking systems showed that the April 44 calls were bought for $2.45. The energy company's stock has pushed higher since then, and the same options shot up past $3.50 yesterday.
Those calls had a long time until expiration, but investors are now shifting to the other end of the spectrum and buying weekly contracts that are good only until Friday's close. Bullish traders bought the October 44 weekly calls for 55 cents and the October 45s for 18 cents.
Calls give investors the right to purchase shares at a given price by a certain date, so they appreciate more rapidly when a stock goes up.
BP rose 4.02 percent to $43.52, popping higher on a strong earnings report and plans to increase its planned businesses divestitures.
The volume exceeded 63,000 contracts in the session, about triple BP's daily average.
—Najarian owns BP calls.
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