By David Russell of OptionMonster

NEW YORK -- Teco Energy (TE) has been hugging its 200-day moving average, and now the bulls are looking for a rally. 

OptionMonster's tracking systems detected the purchase of about 4,000 February 17.50 calls on Monday, most of which priced for 50 cents to 65 cents. Volume was more than quadruple the previous open interest in the strike, which indicates that new money was put to work. 

These long calls lock in the price where investors can buy the utility stock, letting them profit from a rally. They also carry less risk than owning shares directly because the most that can be lost is the cost of the option. 

Teco fell 0.74% to $17.38 on Monday and has been slowly grinding higher since the spring. It's also trying to bounce at about the same area where it peaked last year, which some chart watchers may consider a bullish pattern. 

Total option volume was 27 times greater than average in the session, with calls outnumbering puts by more than 160 to 1.

Russell has no positions in TE.


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.