Bullish traders are piling into Forest Oil as the stock tries to bounce at its July lows.
OptionMonster's trade scanners yesterday detected heavy buying in the December 8 calls, which totaled more than 4,200 contracts compared with previous open interest of just 105. Almost all the trades priced for $0.10.
Those buyers locked in an $8 entry price in the oil stock for the next 4 1/2 weeks. The calls stand to generate big leverage if the shares rally, but will expire worthless if the stock doesn't move.