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
TheStreet Open House

Energy Bulls Turn to WPX

Stocks in this article: WPX

By David Russell of OptionMonster
 
NEW YORK -- Oil and gas names have been drawing attention, and now the bulls are targeting WPX Energy (WPX).
 
OptionMonster's trade scanners detected the purchase of about 10,000 March 20 calls for 70 cents to 83 cents on Wednesday, with the large blocks pricing at the very top of that range. This is clearly fresh buying, as open interest in the strike was just 179 contracts before the trades appeared.
 
These calls lock in the price where investors can buy a stock, letting them cheaply position for a rally with limited risk. The contracts provide the potential for huge leverage but will expire worthless if shares remain below $20 through mid-March.
 
WPX fell 1.3% to $19.03 on Wednesday and has been slowly working higher along its 200-day moving average. The natural-gas and oil producer peaked above $23 in November but then tanked on a weak earnings report. The money-losing company also trades for less than book value, which could make some investors think that it's a good buy at current levels.
 
Total option volume was 22 times greater than average in the session, according to the Heat Seeker. Calls outnumbered puts by a bullish 415-to-1 ratio.
 
Other energy stocks to draw upside trades recently include QEP Energy, Canadian Natural Resources, Callon Petroleum, and Emerald Oil.
 
Russell has no positions in WPX.

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

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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!

Markets

DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

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