By Pete Najarian of OptionMonster
NEW YORK -- NextEra Energy (NEE) is trading near all-time highs, and one large investor is looking for even more gains.
The trader sold 4,576 June 95 calls in one print for $5.05 and bought a block of 5,232 July 100 calls for the ask price of $1.80, according to optionMONSTER's Heat Seeker tracking system. Volume was below the previous open interest in the near-term contracts but above it in the later strike.
The investor is closing the June calls, which expire at the end of Friday's's session, and is rolling them to a larger position at a higher strike one month later. He or she is taking profits off the table and using the remaining proceeds to stay positioned for more gains. The new long calls are betting that the utility will keep rallying through expiration in mid-July, but they will quickly lose value if shares stall or pull back.
NextEra rose 0.47% to $100.16 on Thursday. It hit $100.80 early in the session, just off its all-time high of $101.50 reached on April 30. The July 100 calls ended the day with volume just shy of 8,000 contracts and priced as high as $2.
The company generates and sells electric energy in the United States and Canada. Utilities have been a strong sector all year and has seen notable option activity this week, including bullish call buying in CenterPoint Energy and Consolidated Edison.
Total option volume in NextEra topped 17,000 contracts Thursday, almost triple its full-session average for the last month. Overall calls outnumbered puts by more than 13 to 1, a reflection of the day's bullish sentiment.
Najarian has no positions in NEE.