Duke Energy attracted bullish options activity yesterday after announcing its second deal in recent weeks to produce low-carbon energy in China.
OptionMonster's real-time tracking systems detected the purchase of 5,000 calls at the January 16 strike for $0.55 in the span of 6 seconds yesterday afternoon. The trades exceeded the existing open interest and dwarfed the average daily volume of just 79 calls in those contracts.
DUK was just about flat on the session, gaining a penny to close at $15.72. The shares have recovered from their 52-week low of $11.72 in March but have been stuck in a range between $14 and $16 for the last four months.
For the purchased calls to turn a profit, the stock would need to rise at least 5.3 percent by the time the options expire in mid-January. Calls at all strikes totaled just under 6,000 contracts, outnumbering the 226 puts traded by 26.5 to 1.
Yesterday Duke and the power company said it had reached an agreement to develop solar power and other alternative forms of energy with ENN Group, a privately owned company that supplies 80 cities across China. On Aug. 10 Duke signed a similar deal with state-owned China Huaneng Group in Beijing.
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Mike Yamamoto is an analyst and writer for OptionMonster.