Oneok Gains as Pipelines Stay in Focus

By David Russell, reporter at OptionMonster

NEW YORK -- Pipelines have been the dominant group in the last few sessions, and Monday the bulls came back to Oneok ( OKE).

OptionMonster's tracking programs detected the purchase of about 15,000 October 52.50 calls for $1. The transaction dominated activity in a name that sees volume of fewer than 1,200 contracts in an average session.

Calls lock in the price where investors can buy shares, so they can generate significant leverage in a rally. The trades have already been working for some investors because there was also call buying in the October 50s a month ago. Those calls more than doubled by Monday's session, despite the stock climbing barely 5% in the same period.

Call buyers have increasingly targeted pipelines in the last week as awareness grows of the United States regaining its status as a major player in the energy industry. Kinder Morgan and Energy Transfer have also seen bullish option paper.

Oneok closed Monday's session up 1.66% to $48.46. Total option volume was 22 times greater than average in the name, with calls outnumbering puts by 83 to 1.

Russell has no positions in OKE.

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.

More from Options

Let the Najarian Brothers Crash-Proof Your Portfolio

Let the Najarian Brothers Crash-Proof Your Portfolio

Let the Najarian Brothers Help You Generate Income With Options

Let the Najarian Brothers Help You Generate Income With Options

All Investors Can Trade Options, Just Ask the Najarian Brothers WATCH VIDEO

All Investors Can Trade Options, Just Ask the Najarian Brothers WATCH VIDEO

Learn Options Trading from the Najarian Brothers, the Best in the Business

Learn Options Trading from the Najarian Brothers, the Best in the Business

Call Options Score Big in Russell 2000

Call Options Score Big in Russell 2000