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.

About Andrew Wilkinson 1023 Articles

Affiliation: Interactive Brokers

Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.

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