By David Russell
Talisman Energy (TLM) will address investors today and tomorrow, and at least one bull is champing at the bit to get long.
optionMONSTER's Heat Seeker tracking system detected the purchase of more than 6,200 April 22.50 calls for $0.55 to $0.61 against open interest of only 293 contracts. The trades pushed overall options volume in the oil and natural-gas company to 10 times greater than average.
TLM fell 1.75 percent to $19.63 in morning trading after hitting a 52-week high of $20.22 shortly after the open. The company is scheduled to provide 2010 guidance at 1 p.m. ET today and present at two conferences before the bell tomorrow.
The stock spent the September-December time frame consolidating between about $16.50 and $19.40. It made incrementally higher lows during that period, and appears to have broken through the resistance last week.
The shares must rally another 16% by April expiration for the options purchased today to turn a profit.
Calls account for a bullish 98% of today's options activity.
(Chart courtesy of tradeMONSTER)