Things looking up for oil!!!
The OPEC meeting will be this week.
Alan Stagg of Stagg Engineering will be presenting a paper there!
cbs.marketwatch.com
NEW YORK (CBS.MW) -- Speculation that OPEC will cut production further moved options players to make bullish bets Tuesday on oil service companies.
On the Chicago Board Options Exchange, Schlumberger July 65 calls (SLB=GM) were among the most active trades, with about 1,800 contracts changing hands through midday. In the previous session's option trading, there were 1,200 trades in the August 70 calls (SLB=HN), compared to just 48 trades of the August 70 puts (SLB=TM).
A call option is a way to bet a stock will increase in value, while a put option gains value as a stock drops. Shares in Schlumberger (SLB) gained 1 3/16 to 68 9/16 on Tuesday afternoon.
Other oil service stocks saw their call options rise amid speculation that these companies will get more business if oil prices rebound from their 12-year lows.
Halliburton (HAL) also saw heavy volume in July 50 puts (HAL=SJ) and July 40 calls (HAL=GH). Selling an in-the-money put implies a belief the stock will go higher, as does betting on a call.
Scott Fullman, chief options strategist at Swiss American Securities, noted that the 1,000 trades of the Halliburton July 50 puts represented nearly half of the total open interest in the contract. And the 1,100 trades of July 40 calls came on open interest of just 1,270.
Shares of Dallas-based Halliburton added 1 to 44 7/8.
Bets that OPEC will move to relieve the current supply glut on world markets was also reflected in the futures market. In afternoon trading on the New York Mercantile Exchange, August crude oil rose 55 cents to $14.20 per barrel, July unleaded gasoline gained 1.2 cents to 48.10 cents a gallon and July heating oil climbed 1.38 cents to 39.70 cents per gallon |
