By Pete Najarian, co-founder of OptionMonsterNEW YORK -- Options have been active in Newfield Exploration (NFX), and buyers were stepping in Tuesday. The September 25 calls lit up OptionMonster's trade scanners, with large blocks fetching $0.25 and then $0.30. More than 7,700 traded in volume well above the previous open interest of 3,100 contracts, so new money was definitely being put to work. These calls lock in the price where the oil stock can be purchased, controlling moves to the upside at limited cost. They can also generate some extreme leverage if the shares move far enough. Newfield shares have been trying to bottom out all year and Tuesday rose 0.12% to close at $24.25. Energy has been hot recently, and Tuesday's traders were looking for this stock to join the party. Almost 8,800 Newfield options changed hands in the session, triple its normal amount. Calls made up 8,600 of those contracts, a clear indication of Tuesday's bullish bias.
Bulls Drill for a Gusher in Newfield
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts