Traders are betting on a comeback in Continental Resources, which has lost nearly half of its market value in the last year.
optionMONSTER's Heat Seeker system identified heavy buying in the July 40 calls, with more than 5,000 trading for $1.35 to $1.70. This represents new positions, as open interest in the strike was only 226 contracts before the session began.
Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.
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