By David Russell, reporter at OptionMonster
NEW YORK -- NextEra Energy (NEE) has pulled back to a key level, and momentum traders are piling in.
OptionMonster's tracking systems detected the purchase of more than 4,300 January 82.50 calls, most of which priced for $2.20. Volume was more than 16 times open interest at the strike, indicating that new money was put to work.
These calls lock in the price where shares can be purchased in the power-generation company, letting investors cheaply position for gains and enjoy major leverage if the stock rallies.NextEra shares rose 0.41% to $80.10 on Wednesday and are up 16% so far this year. That's almost triple the gain of the broader utility sector. Back on June 14, traders bought the July 80 calls for $1.40 to $1.55. The stock then proceeded to rally, and those contracts tripled in value by expiration. Total option volume was seven times greater than average in NextEra on Wednesday, with calls outnumbering puts by a bullish 15-to-1 ratio. Russell has no positions in NEE.