Last-day bulls charge into Golar LNG
Golar LNG saw last-minute bullish option volume yesterday.
optionMONSTER's Heat Seeker tracking program detected the purchase of about 6,000 February 17.50 calls for $0.50 the last 40 minutes of the session. This represents fresh buying, as open interest in the strike was just 365 contracts before the trades appeared.
Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Coaching section)
GLNG fell 7.83 percent to $13.42 yesterday and is down 52 percent in the last three months. The liquid natural-gas company is estimated to come out with quarterly results after the close on Feb. 24.
Overall option volume in the name was 3 times greater than average yesterday. Calls outnumbered puts by a bullish 8-to-1 ratio.
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