Investor Optimism Apparent in Quicksilver Options Action

KWK – Quicksilver Resources, Inc. – Options investors expecting Quicksilver Resources’ shares to continue to rally ahead of September expiration are coveting call options this afternoon with the independent energy company’s shares surging 5.00% to $11.93 as of 3:20 pm ET. Bullish players purchased some 7,200 calls at the September $12 strike for an average premium of $0.69 per contract. Investors long the calls are prepared to make money should Quicksilver’s shares increase another 6.4% to exceed the average breakeven point at $12.69 by September expiration. Optimism spread to the higher September $13 striker where approximately 1,000 calls were picked up for an average premium of $0.30 a-pop. Higher-strike call buyers profit if the oil and gas company’s shares jump 11.5% to trade above $13.30 by expiration day next month.