NEW YORK -- Cameron (CAM) has been trying to recover from steep losses, and on Monday the bulls were piling into the energy name.
OptionMonster's trade scanners detected heavy buying in the February 60 calls, with large blocks pricing for $1.55 to $2.25. Almost 23,000 of the contracts traded, dwarfing previous open interest of just 1,543 and therefore indicating new activity.
These calls lock in the price where shares can be purchased, letting investors cheaply position for gains in the oil-servicing company. The options can also generate significant leverage in a rally, but they will expire worthless if the stock remains below $60 through mid-February.
Cameron shares rose 2.94% to $57.74 on Monday. The stock gapped down from above $64 to the $53 level after the company's last earnings report on Oct. 24, but it has been slowly grinding higher since then and is now back above its 50-day moving average.
Total option volume in Cameron topped 35,500 contracts in the session, 15 times its daily average for the last month. Overall calls outnumbered puts by a highly bullish 17-to-1 ratio.
Yamamoto has no positions in CAM.