Energy Bulls Discover Dresser Rand

oil gas drilling
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Dresser Rand Group is an oil-equipment name, and it was discovered by the energy bulls yesterday.

OptionMonster's tracking programs detected the purchase of more than 2,000 September 70 calls, most of which priced for $1.80. Volume was more than 30 times open interest at the strike, indicating that new money was put to work on the long side.

Long calls lock in the price where shares can be purchased, so they have the potential to generate significant leverage from even a modest rally. A 20 percent gain in the stock price, for instance, would result in a profit of almost 100 percent. The contracts also spare the investor the difficulty of timing an entry.

Dresser rose 0.13 percent to $61.47 yesterday. Last month the stock fell to its 200-day moving average, then bounced, and it has been holding its ground near the all-time high of $63.41 achieved in February.

Total option volume was four times greater than average in the session, with calls outnumbering putsby 50 to 1.

—By CNBC Contributor David Russell

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David Russell is a reporter and writer for OptionMonster. Russell has no positions in DRC.