Bulls Target Oil & Gas Driller Before Conference

Option traders are betting that Anadarko Petroleum will pop sometime after the company presents at an industry conference this week.

The February 80 calls stood out Friday, trading more than 8,000 times on OptionMonster's tracking systems. They changed hands early for more than $2 but then the shares fell a bit, and premiums edged down toward $1.80.

There was also buying in the February 85s for $0.45 to $0.65 and the February 90s for $0.20 to $0.25. Volume in all three strikes was below open interest, but the activity is was heavy enough to show up on our systems — especially because calls dwarfed puts in the session by more than 5 to 1.

Anadarko engages in the exploration and production of oil and natural gas, mostly in the United States but also in the Gulf of Mexico and Algeria. The stock, which rose 1.07 percent to $78.32 on Friday, took a massive hit after the Deepwater Horizon oil spill last spring but has fought its way back and has more than doubled since then.

Tomorrow the company is scheduled to present at the Credit Suisse Energy Conference in Vail, Colo. The intensity of Friday's option action — with total volume more than twice the daily average and heavily concentrated in contracts that expire on Feb. 18 — suggests that traders are looking for a gusher after that appearance.


Pete Najarian has no positions in APC.

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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com.