Unit Options Lure Bullish Traders

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David Russell, reporter for OptionMonster.

TULSA, Okla. (TheStreet) -- Options trading is bullish on Unit(UNT Quote) one day before the natural-gas driller releases second-quarter results.

Volume in the August 35 calls surged to 5,248 against open interest of 450 contracts, according to OptionMonster's monitoring systems. The options changed hands for 60 cents to $1.15, with purchases dominating the order flow. Two large institutional-sized purchases accounted for most of the volume.

Unit rose 6.3% to $33.70 in early afternoon trading and is up 28% in the last month. Investors have gotten bullish on the name after natural-gas prices rallied last week on a smaller-than-expected inventory build, which could suggest the commodity is done moving lower.

Overall options volume in Unit was more than four times average and calls outnumbered puts by 4 to 1.

Reported by OptionMonster's David Russell from New York.