| Suncor calls look for bright quarter | |
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Suncor Energy has rallied hard in the last month, and the bulls are looking for that momentum to continue through quarterly results next week.
optionMONSTER's Heat Seeker system found heavy buying in the May 35 calls on Friday, with 4,790 trading for $0.22 to $0.30. These are clearly new positions, as open interest in the strike was just 86 contracts before the session began.
These long calls lock in the price where the stock can be purchased through expiration in mid-May no matter how far it might climb. They could be sold earlier at a profit if premiums rise with a rally before then, providing potentially significant leverage, as was obvious in another recent trade in the name. (See our Education section)
Last month Suncor saw large call buying in the April 29 contracts, which expired on Friday. Those contracts, which our systems indicated were purchased for $0.51 to $0.68 on March 13 , ended last week at $3.85--a gain of more than 500 percent while the stock price rose less than 19 percent in the same period.
SU slipped 0.27 percent to $32.82 on Friday. The Canadian oil-sands company gapped down from the $35 level as the price of crude plunged but held support at $27 in mid-March and has been ripping higher since.
Overall option volume in Suncor exceeded 17,300 contracts on Friday, more than 5 times its daily average for the last month. Total calls outpaced puts by 3.5 to 1.
(A version of this article was posted on optionMONSTER's InsideOptions Pro subscription service Friday.)
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Suncor Energy est une société de production minière et de pétrole basée au Canada. Suncor Energy détient divers projets d'exploration au Canada. Son principal projet en exploration est SUNCOR OPERATIONS & BASE MINE au Canada. |