PetroChina Bulls Bet on Rising Prices

PetroChina(PTR) is not a common target for option traders, but bulls were piling into the name at the end of last week.

About 2,200 December 130 calls were purchased on the Beijing-based energy company on Friday, mostly for 90 cents and 95 cents. Volume was almost twice open interest in the strike, according OptionMonster's real-time tracking systems.

These long calls, which give traders the right to buy the stock for $130, will expire worthless at the end of this week if the stock remains below that level. But they can also appreciate by double, triple or more if PetroChina rallies quickly.

The stock rose 0.41% on Friday to close at $124.58 and has been slowly working its way higher since the summer. Energy has been one of the stronger sectors in the last two weeks as investors bet that a resolution to the European debt crisis will boost commodity prices.

Overall option volume in the name was seven times greater than average on Friday, with calls outnumbering puts by a bullish ratio of 10 to 1.

Russell has no positions PTR.

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