This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Bulls Pile Into Midstates Petroleum

By Mike Yamamoto, managing editor of OptionMonster

NEW YORK -- Traders are looking for a rally in Midstates Petroleum (MPO) by next spring.

More than 3,600 March 7.50 calls traded in a bullish pattern for 40 cents to 50 cents on Thursday, according to OptionMonster's tracking systems. The volume was well above the strike's previous open interest of 994 contracts, indicating that these are new positions.

These calls lock in the price where the stock can be purchased through mid-March 2014 no matter how far it might rise. They could be sold earlier for a profit if premiums gain with a rally before then, but the contracts will expire worthless if shares remain below the $7.50 strike price.

Midstates shares rose 1.49% to $5.46 Thursday. The stock spiked higher on Sept. 11 when the Houston-based oil company reported improving production numbers, but shares have been trading in an increasingly tight range since then.

Thursday's trades pushed total option volume in the name above 4,200 contracts, more than 24 times its daily average. Only 180 of those options were puts, another sign of bullish sentiment in the name.

Yamamoto has no positions in MPO

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $129.61 0.90%
FB $79.53 0.71%
GOOG $561.93 0.63%
TSLA $197.39 -2.90%
YHOO $43.80 -1.10%

Markets

DOW 18,251.51 +118.81 0.66%
S&P 500 2,112.60 +8.10 0.38%
NASDAQ 4,996.1670 +32.64 0.66%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters