Tuesday November 17, 08:30 PM
STOCKS NEWS US-Option player rolls bullish position on Exxon
Stocks on the move
Real (Frankfurt: BJU.F - news) -time Equity news
U.S. stock market report
1502 ET 17Nov2009-Option (OPTI.NX - news) player rolls bullish position on Exxon Mobil (NYSE: XOM - news)
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Shares of Exxon Mobil gained 0.6 percent to 74.86 after Barclays (LSE: BARC.L - news)
Capital upgraded the Dow component to 'overweight' from 'equal-weight',
following news that Warren Buffet's Berkshire Hathaway Inc has increased its
stake in the oil and gas company. The news inspired a flurry of options
activity, said Andrew Wilkinson, senior market analyst at Interactive Brokers
Group in a note to clients. One trader apparently increased bullish sentiment
on the stock by rolling a long call position forward to a higher strike price.
The investor sold 10,000 calls at the January 2010 $75 strike for $2.45 each,
and purchased the same number of calls at the higher April $80 strike for $1.95
apiece, suggesting that this trader held an established long position and now
expects Exxon shares to move even higher. He noted the same trader may have
traded 10,000 puts at the April $70 strike for $2.66 each, but it was not clear
whether the puts were bought as downside protection or sold to extend his
bullish stance.
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