Cameron International Corporation (CAM) is a Houston based oil and gas drilling equipment and services provider. At the time of this post (12:40PM CST), CAM is currently trading at 48.73, up 5.42% on the day. The stock is currently well within the lower portion of its 52 week trading range of 39.52-74.89, though the last few consecutive sessions have been relatively bullish as CAM has managed to bounce off of its 52 week low which printed on January 29th.
Earlier this morning at approximately 10:50AM OptionHacker detected and flagged some unusual options activity in CAM as a sizable block of 25,000 of the Feb ’15 50.0 strike calls were bought, lifting the offer of 0.90. This huge purchase went off against an open interest in the strike of just 1,405, confirming that this was in fact an opening long position, and that a trader was positioning for more upside in CAM heading into the monthly options expiration on February 20th. With an initial cash outlay of approximately $2,225,000 before commissions, this was certainly no small bet, and the purchaser of these calls was rewarded within just hours as already they have traded as high as 1.15 on the day. Fortunately OptionHacker detected and flagged this large opening transaction before the stock price and call value pushed higher, and we were able to get long these calls alongside this large buyer, profiting on the way up as CAM continues its rebound off the lows on the daily chart.
Trade: I bought the CAM Feb 50 calls for $0.95
Risk: $95 per 1 lot
Reward: Unlimited
Breakeven: $50.95
I have already taken profit targets in this trade as high as $1.15 making this a very profitable setup.
Andrew Keene
KeeneOnTheMarket.com
