NEW YORK -- Energy Transfer (ETE) is pushing against record highs, and traders are looking for a breakout.
optionMONSTER's tracking systems detected the purchase of 3,400 April 65 calls, most of which priced for $1.80 to $2.16. Volume nudged above open interest of 2,308 contracts, an indication that new money was put to work.
Calls lock in the price where a stock can be bought, letting investors position for a rally with limited risk. Their low cost can also generate significant leverage on a%age basis if shares move in the right direction.
Energy Transfer rose 1.10% to $64.59 and is up 13% so far this year. The pipeline operator has made consistently higher lows since October and is pushing against the same level where it peaked in November. Chart watchers may consider that a bullish triangle with the potential of a move to new highs if resistance is broken.
Total option volume was six times greater than average in the session, with calls outnumbering puts by a bullish 12-to-1 ratio.
-- Written by David Russell of OptionMonster
Russell has no positions in ETE.