By Jud Pyle, CFA, chief investment strategist for the Options News NetworkLooking at the May 12.5 calls in Nabors Industries ( NBR), we find that more than 9,900 contracts have changed hands today, compared to current open interest of 1,063 for an average price of around $1.41. With earnings due to be announced in NBR after the market closes on April 21, the bulk of this volume has been on the buy side.
It is also worth noting today that in addition to earnings coming one week from today, NBR caught an analyst upgrade this morning from Bank of America/Merrill Lynch. The firm upgraded the shares to "buy" from "underperform" as part of a bullish note on the broader oil service space. The call buyers today could be expecting that, with the catalyst of earnings coming on Tuesday and this analyst upgrade, the stock could have the wind at its back. Jud Pyle is the chief investment strategist for Options News Network (www.ONN.tv) and the portfolio manager of TheStreet.com Options Alerts. Click here for a free trial for Options Alerts. Mr. Pyle writes regularly about options investing for TheStreet.com.