This Day On The Street
Continue to site
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

Long-Term Bulls Like Linn Energy

By David Russell  of  OptionMonster
NEW YORK -- Linn Energy (LINE) reports earnings this week, and traders are already taking a long-term bullish view on the name.
About 3,900 January 25 calls were bought on Friday, most of them priced at $3.70 and $3.90, according to OptionMonster's monitoring systems. The volume was well above the strike's previous open interest of 1,289 contracts, indicating that new positions were initiated.
Long calls lock in the price where a stock can be purchased, allowing investors to position for a rally with much less capital than they would need to buy shares up front. The contracts can provide significant leverage on a move higher but will lose value if the stock drops.
Linn's shares fell 0.83% to $28.56 on Friday. The stock gapped down from the $33 level with the company's last earnings report in late February and continued to decline throughout March. It has been trading sideways for the last month.
The oil and natural-gas producer is scheduled to release quarterly results on Thursday before the opening bell.
Overall option volume in Linn topped 7,300 contracts on Friday, double its daily average for the last month. Total calls outpaced puts by a bullish 5-to-1 ratio.
Russell has no positions in LINE.

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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports