Quicksilver Resources’ Call Options in High Demand

KWK – Quicksilver Resources Inc. – Call options on the energy company are in high demand this morning with shares of the underlying stock rallying as much as 13.5% to an intraday high of $14.47. Shares are currently up 7.05% to stand at $13.65 as of 11:15 am (ET). News that Quicksilver Resources plans to sell its interests in Quicksilver Gas Services for approximately $701 million in cash, among other terms involved in the deal, to repay debt, lifted KWK’s shares after the closing bell on Thursday and continues to fuel today’s rally. Options investors hoping to see continued appreciation in the price of Quicksilver’s shares picked up approximately 2,600 calls at the August $15 strike for an average premium of $0.44 apiece. Call buyers are positioned to make money should shares surge 13.1% over the current price of $13.65 to surpass the average breakeven point to the upside at $15.44 by August expiration day.