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In Friday's trading, Sunoco (SUN - 26-7/8) stepped back by one point, or more than three percent, and closed beneath its 10-day moving average for the first time since August 2. In late-afternoon trading today, though, the stock has risen back above its 10-day trendline, as it has advanced by almost one point, or over two percent. The shares are in the midst of a near-term upswing, surging ahead by over 13 percent since their intraday low on July 28. This upward momentum was confirmed recently by a bullish crossover of SUN's 10-day and 20-day moving averages. Despite this recent success, the equity remains well off its all-time high of 46-3/8 from September 1997 and is beneath all of its key intermediate-term moving averages as well as its 20-month trendline.
In SUN's options pit today, investors are apparently showing their conviction that the security has more upside potential. Open interest on the out-of-the-money November 30 call has seen volume of 2,711 contracts on open interest of a mere 110 contracts. This indicates that most of this afternoon's volume is likely to translate into new open interest. Currently, this is one of the most-active call contracts on the PHLX.