This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Natural Gas Bulls Turn to Questar

By David Russell, reporter at OptionMonster

NEW YORK -- First it was Williams (WMB), and now the natural-gas bulls are looking to Questar (STR).

OptionMonster's tracking programs detected heavy buying in the April 22 calls about halfway through Friday afternoon, with some 2,000 contracts initially bought for 25 cents. Traders continued to pile in later in the session, pushing total volume to 3,964 at the strike --almost triple the previous open interest, indicating that this was new activity.

Calls lock in the price where investors can purchase stock, so they can generate some nice leverage if the shares rally. That's exactly what happened on Friday as those calls inflated to 35 cents by the end of the session, a gain of about 40% versus a much smaller move in the share price.

Questar, which focuses on pipelines and storage in the western United States, closed the session up 2.34% to $20.97. Earlier in the week, its much larger peer Williams saw heavy activity in the August contracts as an investor looked to generate big leverage from a steady gain in the share price.

Total option volume in Questar was 15 times greater than average in the session. Calls outnumbered puts by a bullish 112 to 1.

Russell has no positions in STR or WMB.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $117.81 0.00%
FB $105.45 0.00%
GOOG $750.26 0.00%
TSLA $231.61 0.00%
YHOO $32.94 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports