The market had barely opened Friday when upside option activity in Weatherford International lit up our screens.
The October 15 calls were bought in several large blocks for $0.19 and $0.21, followed by a few more that went for $0.23, optionMONSTER's real-time tracking systems found. These options will appreciate rapidly if the oil-service stock rallies in the short term but will expire worthless if the stock is still below $15.
The contracts are good only until the end of this week, so investors are clearly looking for the shares to move in a hurry. The calls got off to a good start on Friday, already trading as high as $0.52 later in the session as the stock closed 6.1 percent higher at $14.78.
More than 30,000 of those October 15 calls traded compared with previous open interest of 4,605 contracts at that strike, indicating that these were new positions. Overall calls at all strikes outnumbered puts by 55,000 to 8,000, further reflecting the bullish interest in Weatherford.
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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of .
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