Traders are betting that Suncor Energy will rebound in the next five weeks.
Nearly 7,200 April 29 calls were purchased for $0.51 to $0.68 on Friday, according to optionMONSTER's Heat Seeker tracking program. This is fresh buying, as open interest in the strike was only 126 contracts before the trades occurred.
These long calls lock in the price where the stock can be purchased through mid-April 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, but the contracts will expire worthless if shares remain below $29. (See our Education section)
SU fell 0.93 percent to $27.64 on Friday and is down 13 percent on the year. The Canadian oil-sands company has been falling since trading near $32 in mid-February and is now at its lowest levels of 2015.
Total option volume in the name topped 16,700 contracts on Friday, more than quadruple its daily average for the last month. Overall calls outpaced puts by 3.5 to 1.
More From optionMONSTER