NEW YORK -- Oasis Petroleum
(OAS) fell sharply Tuesday, but at least one big player is betting on a rally in coming weeks.
OptionMonster's tracking systems detected the purchase of 11,500 February 45 calls, led by one big print of 9,000 contracts that went for 30 cents. The volume was about twice the strike's previous open interest of 5,776 contracts, which indicates that new money was put to work.
These calls lock in the price where the stock can be purchased no matter how far it might climb in the next 2-1/2 weeks. They could be sold earlier at a profit if premiums rise with the share price before then, but the options will expire worthless if shares remain below $45.
Oasis shares dropped 5.24% to $39.09 Tuesday after the company announced that it would boost capital expenditures by 40% this year. That was the lowest closing price since early September for the Houston-based oil and gas producer.
Overall option volume Tuesday was 22 times its daily average for the last month, with calls accounting for a bullish 80% of the total.
Yamamoto has no positions in OAS.