Caitlin Duffy
Interactive Brokers LLC
BP – BP Plc – Shares in Europe’s third-largest oil company surged to a new 52-week high on Tuesday, rallying more than 4.5% to $45.76, after the company reported third-quarter earnings that declined less than expected and increased its dividend to $0.095 a share.
Options traders looking for shares in BP to continue to climb this week picked up Nov 01 ’13 $46 strike calls. As of the time of this writing, more than 3,100 of the $46 weekly calls have changed hands against open interest of 325 contracts. Most of the calls appear to have been purchased for an average premium of $0.08 apiece. Buyers of the $46 calls expiring at the end of the week may profit if shares in BP settle above the breakeven price of $46.08.
Overall options volume on BP is nearing 25,000 contracts as of 11:05 a.m. ET, which is roughly 90% of the stock’s average daily options volume of 27,300 contracts. Trading in calls is outpacing that of puts, with the call/put ratio on the stock hovering around 4.0 this morning.
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