logo
  Join        Login             Stock Quote

BP, Total Call Options In Play For A Second Day

 October 21, 2011 01:29 PM
 


BP PLC & Total SA (BP) & (TOT) – Intriguing activity in call options covering Europe's second- and third-largest oil companies, BP and Total, carried over from Thursday's trading day to the final session of the week. Shares in both companies are up on the day, with BP gaining 1.8% to $42.07, and Total rising 1.1% to $52.36, by 12:35 pm EDT. Yesterday we noted one strategist's dispersion trade; selling calls on Total and buying calls on BP, in a position that seemed to suggest fruitful months ahead for BP and less-stellar share price performance at Total.

[Related -Should You Buy The Buckle (BKE)?]

News out on BP today may support such bullish sentiment. The company was reportedly granted approval by U.S. regulators to once again engage in oil exploration in the Gulf of Mexico, its first such approval since the company's disastrous offshore spill in 2010. BP is slated to report its performance for the third quarter ahead of the opening bell on October 25, while Total reveals its numbers pre-market on October 28.

The call activity in both names this morning is almost identical to that observed on Thursday. It looks like the investor sold some 7,600 Total calls at the May 2012 $55 strike for a premium of $3.30 each, and purchased around 8,400 calls on BP at the April $44 strike for a premium of $2.89 apiece. The strategist walks away with the full amount of premium received for writing the TOT call options as long as shares in the French oil company fail to exceed $55.00 at expiration in May. Meanwhile, profits may be available on the long BP call options should shares in the name rally another 11.5% to surpass the effective breakeven price of $46.89 by expiration in April 2012. Options implied volatility readings on both stocks are down roughly 6.0% as of 12:50 pm in New York.

[Related -BP plc (BP) Remains Undervalued]

Chico's FAS, Inc. (CHS) – Bullish options players have taken a shine to the retailer of private-branded apparel and accessories today, with shares in the Fort Myers, Florida-based company rallying 2.25% to $12.35 on a risk-on day for U.S. equities. Investors positioning for Chico's shares to extend gains snapped up call options in the November contract. The most heavily populated option is the Nov.


Next Page >>12
iOnTheMarket Premium
Advertisement

Advertisement


Comments Closed


rss feed

Latest Stories

article imageUpbeat Forecasts For US Housing Sales In March

The Fiscal Times advises that the “the housing market is about to perk up.” One of the reasons for the read on...

article imageHappy Birthday, Moore's Law - Pearls of Wisdom for Investors

As Moore’s Law turns 50, we reflect on technology’s incredible history and limitless read on...

article imageIndex Investing Is Not Inherently Socialistic

How does capital get allocated to the public stock read on...

article imageDon't Let Fear of a 'Grexit' Keep You Out of European Stocks

After nearly three years of extremely weak economic growth, the European Central Bank is finally delivering read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.