Whiting Petroleum (WLL) Bears Step In Amid Buyout Buzz

Whiting Petroleum Corp (WLL) is up over 12% today

Digital Content Group
Mar 9, 2015 at 11:16 AM
facebook twitter linkedin


Whiting Petroleum Corp (NYSE:WLL) is 12.6% higher today at $38.32, after the company announced it will be searching for a possible buyer, continuing the M&A trend for today. Speculators are wasting little time, as overall options volume is running at 10 times the normal intraday pace. Puts, specifically, are in high demand, with the March 37 strike by far today's most popular contract. It appears some traders are buying to open the puts, in hopes of WLL breaching $37 by the close on Friday, March 20, when front-month options expire.

The preference for puts is just more of the same for WLL speculators, according to data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The equity's 50-day put/call volume ratio across these exchanges is 1.05, higher than 91% of all readings from the past year.

Analysts, though, are believers of the shares. Seventeen out of 23 covering brokerage firms say WLL is a "buy" or better. Also, the stock saw its price target raised at Barclays to $32 from $27 just this morning.

From a long-term perspective, Whiting Petroleum Corp (NYSE:WLL) has struggled mightily. On Aug. 29, the security touched an all-time high of $92.92, yet since then, has given back almost 59%.

Daily chart WLL Since August 2014
 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners