By Mike Yamamoto of OptionMonster
Oil and gas driller Cameron (CAM) is attracting bullish option activity ahead of its earnings report next week.
A trader sold 5,130 November 65 calls for $2.18 and bought the same number of November 70 calls for 58 cents on Wednesday, according to optionMONSTER's Heat Seeker tracking system. Volume was below open interest in the lower strike but above it in higher contracts.
The trader is probably taking some profits off the table after Cameron's recent rally and is using some of the proceeds to open a position $5 higher. The new long calls are looking for the stock to climb above $75 by mid-November but will expire worthless if shares remain below that level.
Cameron shares rose 1.84% Wednesday to close at $64.91. The stock had been range-bound since early September but broke above its 200-day moving average last Thursday and has been running higher since. The energy company is scheduled to announce third-quarter results on Oct. 24 before the open.
Wednesday's call roll pushed total option volume in the name above 18,000, more than 7.5 times its daily average for the last month. Only 546 of those contracts were puts, a reflection of the session's bullish sentiment.
Yamamoto has no positions in CAM.