Bulls Dominate Cameron International Corporation (CAM) Options Pits

Cameron International Corporation (NYSE:CAM) is higher this afternoon, as news of a decline in U.S. oil rigs overshadows a batch of mixed brokerage attention. At last check, the shares were up 1.1% at $45.27 -- and unlike fellow rebounding energy name Seadrill Ltd (NYSE:SDRL), options traders are gambling on more upside.

CAM calls are trading at 19 times what's typically seen at this point in the day, and are outpacing puts by a nearly 92-to-1 margin. Option bulls have set their sights the $47.50 mark, and appear to be buying to open contracts in the February- and March-dated series. By initiating these long positions, speculators expect the stock to be sitting north of the strike by the respective expirations.

Today's call-skewed session just echoes the withstanding bullish bias witnessed in CAM's options pits. For starters, the stock's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 5.66 ranks just 7 percentage points from a 52-week peak. Plus, CAM's Schaeffer's put/call open interest ratio (SOIR) of 0.24 is docked at an annual low, meaning short-term speculators are more call-heavy now than at any other point in the past year.

With such an upbeat attitude emanating from the options pits, it would seem as if CAM has been a technical standout -- only this isn't the case. In fact, since hitting a record peak of $74.89 in early September, CAM has surrendered more than 39% of its value. What's more, the shares hit a two-year low of $39.52 last Thursday, on the heels of a disappointing earnings report. Should Cameron International Corporation (NYSE:CAM) resume its downward trajectory, an unwinding of bullish bets could translate into a fresh wave of selling pressure.