By Mike Yamamoto of OptionMonster
NEW YORK -- Oneok (OKE) has pulled back after a steady climb and now the bulls are back.
OptionMonster's trade scanners showed heavy buying in the January 60 calls Wednesday, starting with the largest print for 70 cents.. The options kept flowing, and premiums rose to $1 as more than 4,300 contracts traded against previous open interest of 1,605.
These calls lock in the price where the energy-pipeline stock can be bought, letting investors cheaply position for a rally. But the contracts will expire worthless if shares remain below the $60 strike price through mid-January.
Oneok shares rose 0.39% to $57.26 on Wednesday, reversing an earlier drop. The name also saw bullish activity in the January 55 calls back in August.
Total option volume was six times greater than average in the session, with calls outnumbering puts by 27 to 1.
Yamamoto has no positions in OKE.