EXCO Resources Call Buyers Go Long

By David Russell, reporter at OptionMonster

DALLAS (TheStreet) -- Call activity surged in EXCO Resources (XCO Quote) Wednesday as investors got long the oil driller before an analyst meeting scheduled for later in the month.

OptionMonster's monitoring systems detected unusual activity in the December 20 calls, which experienced institutional-sized buying at 60 cents. Volume in the strike totaled 3,764 contracts, more than five times existing open interest.

The stock rose 1.8% to $15.23 Wednesday and is up 13% in the last month. The stock needs to climb 35% by expiration for the options to turn a profit.

The call buyers may expect positive news from the company's analyst meeting on Sept. 23, or simply view the stock as an attractive buy. The company's earnings beat analyst forecasts the last time EXCO released results on Aug. 4, but revenue missed estimates.

OptionMonster's systems also detected activity in the September 15 calls, although volume was below open interest and it wasn't clear whether the options were bought or sold. An investor may have sold the September 15 calls to purchase the December 20 strikes, which would still reflect a positive outlook on the stock.

Overall options activity in EXCO was almost five times average Wednesday, with calls outnumbering puts by 39 to one.

-- Reported by David Russell of OptionMonster in New York.